Powered by InfodriveIndia.com

Date: 06-08-2008
Notification No: Service Tax Circular No 104 /2008 (ST)
Issuing Authority: Service Tax  
Type: Circular
File No: 137/175/2007-CX4
Subject: Service Tax levy on goods transport by road services

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

New Delhi, dated the 6th August, 2008

Circular No. 104/ 07 /2008-ST


Chief Commissioners of Central Excise & Customs (All)
Chief Commissioners of Central Excise (All)
Director General of Service Tax
Director General of Central Excise Intelligence
Commissioners of Service Tax (All)
Commissioner (DPPR)
webmaster@cbec.gov. in

Sir/ Madam,

Subject: - Service tax levy on goods transport by road services -reg.

The All India Motor Transport Congress (AIMTC) has represented to government regarding the difficulties being faced by the goods transport agency in respect of service tax levy on goods transport by road service. In this regard, a number of meetings were held between the representatives of AIMTC with the government and a joint statement by the government and AIMTC, dated 4.7.08, was issued laying down the principles to be followed in respect of the issues raised by AIMTC.

  1. The issues raised by AIMTC and the clarifications with respect to those issues are given below:
  2. Issue: GTA provides service to a person in relation to transportation of goods by road in a goods carriage. The service provided is a single composite service which may include various intermediary and ancillary services such as loading/unloading, packing/unpacking, transshipment, temporary warehousing. For the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of intermediary and ancillary services. In such a case, whether the intermediary or ancillary activities is to be treated as part of GTA service and the abatement should be extended to the charges for such intermediary or ancillary service?

    Clarification: GTA provides a service in relation to transportation of goods by road which is a single composite service. GTA also issues consignment note. The composite service may include various intermediate and ancillary services provided in relation to the principal service of the road transport of goods. Such intermediate and ancillary services may include services like loading/unloading, packing/unpacking, transshipment, temporary warehousing etc., which are provided in the course of transportation by road. These services are not provided as independent activities but are the means for successful provision of the principal service, namely, the transportation of goods by road. The contention that a single composite service should not be broken into its components and classified as separate services is a well-accepted principle of classification. As clarified earlier vide F.No. 334/4/2006-TRU dated 28.2.2006 (para 3.2 and 3.3) and F. No. 334.1/2008-TRU dated 29.2.2008 (para 3.2 and 3.3), a composite service, even if it consists of more than one service, should be treated as a single service based on the main or principal service and accordingly classified. While taking a view, both the form and substance of the transaction are to be taken into account. The guiding principle is to identify the essential features of the transaction. The method of invoicing does not alter the single composite nature of the service and classification in such cases are based on essential character by applying the principle of classification enumerated in section 65 A. Thus, if any ancillary/intermediate service is provided in relation to transportation of goods, and the charges, if any, for such services are included in the invoice issued by the GTA, and not by any other person, such service would form part of GTA service and, therefore, the abatement of 75% would be available on it.

  3. Issue 2: GTA providing service in relation to transportation of goods by road in a goods carriage also undertakes packing as an integral part of the service provided. It may be clarified whether in such cases service provided is to be classified under GTA service.

    Clarification: Cargo handling service [Section 65 (105) (zr)] means loading, unloading, packing or unpacking of cargo and includes the service of packing together with transportation of cargo with or without loading, unloading and unpacking. Transportation is not the essential character of cargo handling service but only incidental to the cargo handling service. Where service is provided by a person who is registered as GTA service provider and issues consignment note for transportation of goods by road in a goods carriage and the amount charged for the service provided is inclusive of packing, then the service shall be treated as GTA service and not cargo handling service.
  4. Issue 3: Whether time sensitive transportation of goods by road in a goods carriage by a GTA shall be classified under courier service and not GTA service?

    Clarification: On this issue, it is clarified that so long as, (a) the entire transportation of goods is by road; and (b) the person transporting the goods issues a consignment note, it would be classified as ‘GTA Service’.

  5. Pending disputes on the above issues may accordingly be decided expeditiously.

  6. Trade & field formations may be informed suitably.
  7. Hindi version will follow.

Yours faithfully,
(Gautam Bhattacharya)
Commissioner (Service Tax)
F.No. 137/175/2007-CX4


Enquiry Form

Fields marked with an asterisk * are required.


What is New?

Date: 30-11-2015
Customs Notification No 135/2015 (NT)
Fixation of Tariff Value Notification amending Notification No. 36/2001–Customs (N.T.), dated the 3rd August, 2001

Date: 30-11-2015
RBI/2015-16/255 A.P. (DIR Series) Circular No.32
External Commercial Borrowings (ECB) Policy – Revised framework

Date: 27-11-2015
Systems Alert for monitoring realisation of export proceeds in EDI under the BRC Module for ICES (introduced in year 2009) and the new RBI BRC Module introduced under DG (Systems) letter dated 28.8.2014

Date: 26-11-2015
RBI/2015-16/253 A.P. (DIR Series) Circular No.31
Investment by Foreign Portfolio Investors (FPI) in Corporate Bonds

Date: 26-11-2015
RBI/2015-16/249 A.P. (DIR Series) Circular No.30
Advance Remittance for Import of aircrafts /helicopters / other aviation related purchases

Date: 26-11-2015
RBI/2015-16/248 A.P. (DIR Series) Circular No. 29
Import of Goods into India – Evidence of Import

Date: 26-11-2015
Service Tax Circular No.189/08/2015–ST
Clarification regarding leviability of service tax in respect of Seed Testing with effect from 01.07.2012

Date: 24-11-2015
Customs Notification No 113/2015 (NT)
Appointment of Common Adjudicating Authority

Date: 24-11-2015
Customs Notification No 114/2015 (NT)
Appointment of Common Adjudicating Authority

Date: 24-11-2015
Customs Notification No 115/2015 (NT)
Appointment of Common Adjudicating Authority

Exim Guru Copyright © 1999-2015 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory. RSS


C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001