Category - business auxiliary service or good transport agency

[Guest]

If any transporter is covered under "good transport agency" and his contarct is with the public limited company, which is covered under seven catogery. The transporter is not engaged in procurement of service but is engaged in providing the service of GTA as even otherwise in most of the cases those who book the goods for transport dont transport the goods by their own transport and deliver to trucks owned by others and this practice is followed by even big transport companies. In such cases, they only charge the buily commission from the truck driver. Our question is that in the above case, is transport covered under business auxiliary service?? and he is liable to pay the service tax on commission received against issuance of bilty but he is already registered as GTA???

[Guest]

AS PER THE ACT THE SERVICE TAX LIABILITY ARISES IN CASE OF THE GOODS TRANSPORT SERVICES BEING PROVIDED BY THE GTA, IF SUCH A GTA ISSUES G.R. AND IF THE CONSIGNER OR THE CONSIGNEE IS ONE AMONGST THE SEVEN CATEGORIES THE LIABILITY FOR SERVICE TAX FALLS ON THE CONSIGNOR OR CONSIGNEE, WHO SO EVER PAYS THE FREIGHT OR IS LIABLE TO PAY THE FREIGHT. THUS OWNERSHIP OF THE TRUCK IS NOT THE ISSUE. IN PRESENT CASE, IN MY OPINION SERVICE TAX LIABILITY IS CERTAINLY THERE TO BE PAID.

[Surender Gupta]

Any person who is acting as “goods transport agency” is falling under the provisions of service tax under the category of GTA. On the basis of facts and circumstances you can decide that whehter such "buily commission agent" are merely commission agent or GTA. If they are acting merely as "buily commission agent" they may fall under the category of "Business Auxiliary Service" otherwise they may fall under the Category of "GTA".