Clarification issued for classification of various services provided by Goods Transport Agencies (GTAs) during the course of provision of transportation of goods by road services (GTA services)
Under Service tax Laws, GTA has been defined to mean any person providing services in relation to transport of goods by road and who issues a Consignment Note, by whatever name called.
Generally, GTAs provide composite services of transportation of goods by road along with certain ancillary services in the form of loading/unloading, packing/unpacking, transshipment, temporary storage etc. These services are either provided by GTA himself or is outsourced.
If GTA issues an invoice including charges for such ancillary services and these are not independent activities but are provided to support provision of main services of GTA, the same shall be classified as GTA services vide Section 66F of the Service Tax Rules, 1994. Consequently, the abatement of 70% shall be available to all such ancillary services classified as GTA services as well.
Further, it is clarified that even the cases of delivery of goods within a stipulated time would be covered under GTA services only provided the entire transportation is by road and GTA issues a consignment note, by whatever name called.
Clarification on GTA services
At CAKART www.cakart.in you will get everything that you need to be successful in your CA CS CMA exam – India’s best faculty video classes (online or in pen drive) most popular books of best authors (ebooks hard copies) best scanners and all exam related information and notifications.Visit www.cakart.in and chat with our counsellors any time. We are happy to help you make successful in your exams.
Click Here to download FREE CA CS CMA Text Books.