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TMI BlogService tax on GTAX X X X Extracts X X X X X X X X Extracts X X X X ..... Service tax on GTA X X X X Extracts X X X X X X X X Extracts X X X X ..... ment and payment is made by cheque. Payment to some is made by cash against voucher. The amount of freight for individual consignments is between Rs. 700 to Rs. 1500. (2) For Job work we are collecting the inputs from principal manufacturer and pay freight in the similar manner. We raise our bill for transportation charges. Some times, we pay less to the transporters than we collect. (3) We are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... getting inputs from outside State. Transporter issues consignment note and the payment is made by us. Kindly let us know our service tax liability in the above cases. Reply By Chintamani Bhide: The Reply: Mr. Agarwal, as per the details given by you at sr. no. 1 in your query, since you are engaging local transporters who do not issue 'Consignment Note', they can not be termed as 'GTA' and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y are self-employed persons not acting as an Agency, you are not liable to pay service tax on the same. It was clarified by the then FM while presenting the Budget in 2004 that it is not the intention to tax the individual truck owners/operators. They are not transport booking agents who wait for several consignments to make a truckload and issue consignment notes to individual consignors. The con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cept of Agency is taxable. If the same methodology is applied at Sr. no. 2, then the answer would be same as above. However, if you are paying less to the transporter than what is recovered on account of Transport charges, then you will be earning a commission, which may be a taxable service provided by you and may be viewed as liable to tax, in my opinion. In case of Sr. no. 3, since consignmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t note is involved and freight is paid by you, you will be liable to pay tax on abated value. The tax paid by you will be available as cenvat credit to you as it is for inward transportation of materials. The credit can be taken on the basis of GAR-7challan thru which the tax is paid. X X X X Extracts X X X X X X X X Extracts X X X X
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