Indian Service Tax
Booking of Transport of Goods by Road
Effective
Date: 10/09/2004.
Authority: Finance (No.2) Act, 2004
Rate of Service Tax: 10% - Cess 2% of 10% = 0.2. Total ST = 10.2%.
Definitions
"goods" has the meaning assigned to it in clause (7) of Section 2 of the Sale of Goods Act, 1930 (3 of 1930); [Section 65 (50)]
"goods carriage" has the meaning assigned to it it! clause (14) of Section 2 of the Motor Vehicles Act, 1988 (59 of 1988), [Section 65 (50a)]
"goods transport agency" means any commercial cQncern which provides service in relation to transport of goods by road and issues consignment note, by whatever name called, (Section 65 (50b)]
Taxable service
Taxable service means any service provided, to a customer, by a goods transport agency, in relation to transport of goods by road in a goods carriage. [Section 65 (105) (zzp)].
Exemptions
See Notification No. 18/2004-ST, dt. 10/9/2004. For full text see under "Airport Service".
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Truck operators
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Truck owners
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Rail/Air/Ship cargo courier
Value of taxable service: Gross amount
Person liable to pay: Goods Transport Agency
Head of Account: To be issued.
Main text of Departmental Circular/TN
F.No. B2/8/2004-TRU, Date: 10/9/2004
26. Transport of goods by road by a goods transport agency: In pursuance to an agreement between the Government and representatives of the transport industry, a Committee has been set up to look into appropriate mechanism/modalities for collection and payment of service tax by commercial concerns and the rules/notifications will be finalized in consultation with the Committee. The Committee would give its report within two months. In tenus of the agreement, the tax would be levied and collected in a manner to be notified. No tax would, therefore, be payable by the goods transport agency till such time Government comes out with the relevant rules/notifications prescribing the modalities for levy and collection.
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