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TMI BlogService tax levy on goods transport by road service - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... and clarification thereon are given below. S.No. Issue Clarification 1. In certain cases goods transport agents undertake transport on 'door to door' basis i.e. the goods are lifted from consignors factory or premises and delivered at consignees factory or premises. Whether such activity falls under another taxable service, namely, 'courier service' (not entitled to abatement of 75%, as available in case of GTA service). By definitions, 'courier service' covers transport of time-sensitive documents/goods/article and where a person, either directly or indirectly, carries or accompanies such documents/goods/article Therefore, it is a question of fact whether an activity falls under courier service or GTA service. The distinction is cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ross freight by the consignor or the consignee are being subjected to service tax under different services, such as 'cargo handling service', 'storage and warehousing service', even though the same were considered as part of GTA service by the Committee constituted by the Government at the time of bringing into effect the levy of service tax on GTA service. The amendment made in the definition of cargo handling service', in the Budget 2008 has further complicated the issue. The scope of 'GTA service', cargo handling service' and storage and wherehouse service' has been defined explicitly in the Finance Act, 1944. When seen in totality and adopting the principal of harmonious clearly reflect that 'undertaking the responsibility (by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit of any of the service providers to the goods transport agent can be taken. Whether or not a service provided to a goods transport agent is a taxable service or not, would depend on the facts. But if it fails within the definition of any of the taxable services, tax has to be paid by that service provider, irrespective of the fact that the value of the same is included in the total freight charges, which suffers service tax under GTA service. The abatement of 75% allowed in case of GTA service takes such factors into account. 7. One of the recommendations made by the aforementioned Committee was that the field formations would not call for/verify records pertaining to period prior to imposition of service tax levy (i.e. 01.01.2005) un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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