Is service tax applicable on transport services?
Are we liable to pay service tax on freight paid on transportation of these food items? No. Neither service receiver, nor service provider (GTA) is liable to pay service tax as the transportation of these items is exempted.
What is the applicable service tax?
Service tax is applicable in India on all taxable services provided by an individual or entity. ‘Service’ has been defined in the Service Tax Act as any activity provided for consideration and carried out by a person for another.
Who is responsible for service tax on transportation?
Sub-rule 2(1)(d) of Service Tax Rules, 1994 provides that where a service of transportation of goods is provided by a ‘goods transportation agency’, and the consignor or consignee is covered under any of the specified categories prescribed therein , the person liable to tax is the person who pays, or is liable to pay …
Is transportation exempted from GST?
Thus, it is to be seen that mere transportation of goods by road, unless it is a service rendered by a goods transportation agency, is exempt from GST. Under GST laws, the definition of Goods Transport Agency is provided in clause (ze) of notification no. 12/2017-Central Tax (Rate) dated 28.06. 2017.
What services are exempt from Service Tax?
Service Tax Exemptions apply to the following services outlined under the negative list
- Production.
- Harvesting.
- Testing.
- Cultivation.
- Agricultural protection.
- Supply of manpower to farms.
- Any agricultural process taking place on a farm.
- Lease of equipment or land.
What are the services exempted from Service Tax?
Any service that is offered to any international organisation or to the United Nations is exempt from service tax. Any service that is provided or offered free of cost is exempt from service tax. Taxable services that are provided to diplomats and their family members for official purposes are exempt from service tax.
Which transportation is exempt from GST?
Thus, all transport of goods by road is exempt except in case of GTA and courier services. “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.
What do you know about the service tax?
Definition: Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. This tax is payable only when the value of services provided in a financial year is more than Rs 10 lakh.