Receipt of Notice to branch offices of GTA - reg - Service Tax - F. No. 137/43/2008-CX.4

Receipt of Notice to branch offices of GTA - reg F. No. 137/43/2008-CX.4 Government of India Ministry of Finance Department of Revenue (Central Board of Excise Customs) New Delhi 13 th Feb, 2008 To, (1) The Chief Commissioners of Central Excise Service Tax (2) The Director General of Central Excise Intelligence Madam/Sir, Subject: Receipt of Notice to branch offices of GTA - reg All India Transporters Welfare Association (AITWA) has brought it to the notice of the Board that in recent past the service tax authorities and DGCEI are issuing letters and summons to the 'branch offices' of the GTA companies, though they have centralized registrations. Through summons routine information like copies of centralized registration, ST-3 returns invoices, balance sheet, etc, have been called for from such branch offices. It 'has also been stated that the service tax authority has asked the Goods Transport Agencies (GTAs) to pay service tax separately on services like temporary storage, consolidation. packing, etc., though no separate amounts (over and above the freight charges) are charged by the GTA for these services. 2. The issues have been examined. In case of centralized registration the service tax / DGCEI authorities should not call for documents from the individual branch offices. All Information should be asked from the central office, which only is registered with the department. Secondly asking for documents and routine information under summons (unless other means of obtaining such information have failed to yield results) is against the explicit instructions issued by the Board, It appears that these instruction are not being followed scrupulously by the field formations. 3. As regards, the incidental services provided by GTA, it is a question of fact. In case, no separate (other than freight) charges are recovered by GTA, no service tax can be levied for providing such incidental services as they would be considered having been provided free of cost This, however, requires verification with the registered office of GTA. 4. The undersigned has been directed to inform that the above directions should be strictly adhered to and that their non-adherence would be viewed seriously. In case, any genuine difficulty is faced in implementing these directions, the matter may be brought to the notice of the Board. Yours faithfully, (Gautam Bhattacharya) Commissioner (Service Tax) CBEC. North Block Telefax : 011-2309 2275