Re: Applicability of GTA provision on internal shifting of coal by heavy vehicle

[Anurag Singal]

Another way to interpret this would be to check on the definition of "road"....road has to be a public road , available to people at large...hence , internal shifting may be exempted

Regards

Anurag

http://www.cajobportal.com/

On Thursday, 16 January 2014 13:58:11 UTC+5:30, CA. SAWAN KUMAR wrote:

Dear Sir,

As per Section 65B(26) GTA is defined as follows:

It means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

Hence, if the transporter wants to avail the benefit of abatement he will have to classified as a GTA and for that he needs to issue Consignment note by whatever name called.

With respect to abatement entry no. 7 of Notification 26/2012-ST, dated 20-6-2012 says that the service tax is payable for services provided by GTA on 25% of gross amount charged. The abatement of 75% of gross amount charged is permitted for determining the value on which tax is payable. However the services of GTA by road are not considered as output services and hence credit of inputs, capital goods and input services are not available to service provider. 

Hope this resolves your query. In case of any further queries do get back to us.

Thanks & Regards,

Sawan Kumar

­­­­­­­­­ACA, MBA, DISA (ICAI)

SAWAN KUMAR | PARTNER | ARSK & Co. | 30 Bentick Street, 3^rd Floor, R NO. 308 | Call: 033-40043220 | Email: casa...@gmail.com |

Head Office: Bangalore

Branches: Kolkata | Ranchi

Should you wish to share your feedback on the reply email us at feedback...@gmail.com

On Thu, Jan 16, 2014 at 12:43 PM, Arun Kumar Pati <arunp...@gmail.com> wrote:

Dear Sir

One contractor is engaged in internal shifting of coal in a steel & power company.will the benefit of abatement of GTA can be availaed by the steel company.If yes what is the procedure.Is the contractor has to issue Consignment note to the steel company.

Please advise.

CA.Arun 

Mobile:09776183325

[Vikash / ARVG]

Dear Mr. Pati,

 

This has reference to the query raised by you in the trailing mail.

 

In this regard, please note that as per section 65B(26) of Finance Act, 1994, ‘Goods Transport Agency’ means any person who provides service in relation to transport of goods by road and issues consignment note by whatever name called. Thus issuance of consignment note is an essential requirement to be a goods transport agency.

 

Further, As per entry no 7 of Notification 26/2012- ST, dated 20-06-2012, service tax is payable for services provided by Goods Transport Agency on 25% of gross value of service. A 75% abatement is allowed on the tax payable.

 

It must be noted that, under Reverse charge mechanism or tax shift, Service receiver is liable to pay service tax on such services.

 

In the instant case, it must be noted that the above provisions would only apply if the the service provider is a GTA.

 

In this regard, we would have to make sure that the agreement between the company and the contractor is a GTA Agreement and not any other agreement. If the transportation is carried out in lieu of some other services the concept of bundled service would apply and we would have to see the substance of the agreement.

 

Further, it must be noted that the abatement of GTA is not available nor reverse charge of GTA would apply in case the basic nature of service is service other than GTA i.e. cargo handling service or any other service.

 

In case you require any other clarification, do let us know.

 

Thanks & Regards,

CA. Vikash Agarwal

Partner - ARVG & Co.

-----------------------------

D: + 91 33 4004 6644

M: + 91 98311 35411

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[raj kumar rungta]

Dear freinds

Pl.clarify,whether delivery of vehicles by the manufacturer/depo to the dealer's points on self run basis i.e not loaded on another vehicle is a GTA service.

WIth thanks and refds

CA R.K.Roongta

[Avijit Haldar]

Please let me know the status of Income Tax on Interests on FDs created by funds in the NRE account transferred by the NRI during the course of his services outside India. Is it taxable ? What about accrued interests?
 

[Agrawal Sanjiv and Company]

It is an output service in certain cases.

Sanjiv Agarwal

On Thu, Jan 16, 2014 at 2:40 PM, Ashish Singhania <ashi...@gmail.com> wrote:

This message is eligible for Automatic Cleanup! (ashi...@gmail.com) Add cleanup rule | More info

Please also note that service provided by way of transportation of goods by road except the GTA falls under negative list.below mentioned service will fall under negative list,provided consideration are not in the form of rent otherwise it will fall under supply of tangible goods service.

Regards
CA Ashish Singhania

On 16 Jan 2014 13:58, "sawan kumar" <casa...@gmail.com> wrote:

Dear Sir,

As per Section 65B(26) GTA is defined as follows:

It means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

Hence, if the transporter wants to avail the benefit of abatement he will have to classified as a GTA and for that he needs to issue Consignment note by whatever name called.

With respect to abatement entry no. 7 of Notification 26/2012-ST, dated 20-6-2012 says that the service tax is payable for services provided by GTA on 25% of gross amount charged. The abatement of 75% of gross amount charged is permitted for determining the value on which tax is payable. However the services of GTA by road are not considered as output services and hence credit of inputs, capital goods and input services are not available to service provider. 

Hope this resolves your query. In case of any further queries do get back to us.

Thanks & Regards,

Sawan Kumar

­­­­­­­­­ACA, MBA, DISA (ICAI)

SAWAN KUMAR | PARTNER | ARSK & Co. | 30 Bentick Street, 3^rd Floor, R NO. 308 | Call: 033-40043220 | Email: casa...@gmail.com |

Head Office: Bangalore

Branches: Kolkata | Ranchi

Should you wish to share your feedback on the reply email us at feedback...@gmail.com

On Thu, Jan 16, 2014 at 12:43 PM, Arun Kumar Pati <arunp...@gmail.com> wrote:

Dear Sir

One contractor is engaged in internal shifting of coal in a steel & power company.will the benefit of abatement of GTA can be availaed by the steel company.If yes what is the procedure.Is the contractor has to issue Consignment note to the steel company.

Please advise.

CA.Arun 

Mobile:09776183325

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