MANU/DSTX/0028/2015

Ministry : Ministry of Finance

Department/Board : Service Tax

Circular No. : 186/5/2015-Service Tax

Date : 05.10.2015

Notification/ Circulars Referred : Notification No. 26/2012-ST dated 20.06.2012 MANU/DSTX/0066/2012

Citing Reference:
Notification No. 26/2012-ST dated 20.06.2012 MANU/DSTX/0066/2012  Referred

To,

Principal Chief Commissioner / Chief Commissioner of Central Excise, Service Tax and Customs (All),
Director General of Service Tax
Director General of Audit
Director General of Central Excise Intelligence Principal Commissioners of Service Tax (All)
Commissioners of Service Tax (All)
Commissioner (DPPR)
webmaster@cbec.gov.in

Sir/ Madam,

Service tax levy on services provided by a Goods Transport Agency -reg

The All India Transport Welfare Association (AITWA) has represented regarding the difficulties being faced by the Goods Transport Agencies (GTAs) in respect of service tax levy on the services of goods transport. Doubts has been raised by the All India Motor Transport Congress (AIMTC) regarding treatment given to various services provided by GTAs in the course of transportation of goods by road.

2. The issue has been examined. Since July 1, 2012, service tax has shifted to a negative list regime, by which all the services except those covered in negative list as mentioned in section 66D of the Finance Act, 1994 or those exempted by notification are chargeable to service tax.

3. Goods Transport Agency (GTA) has been defined to mean any person who provides service to a person in relation to transport of goods by road and issues consignment note, by whatever name called. The service provided is a composite service which may include various ancillary services such as loading/ unloading, packing/unpacking, transshipment, temporary storage etc., which are provided in the course of transportation of goods by road. These ancillary services may be provided by GTA himself or may be sub-contracted by the GTA. In either case, for the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of ancillary services provided in the course of transportation of goods by road. These services are not provided as independent activities but are the means for successful provision of the principal se........