Service Tax On Goods Transport Services

Particular date of the levy – The levy on items transport operators has recently been imposed by the Funding (No. 2) Act 2005 w. e. f. 10-09-2004 but the levy has been postponed till the end of December 31st, 2004.

Meaning of Products Transport Agency – Section 65 (50b) of the Finance Act 1994 lies down that goods travel agency means any commercial concern which provides service in relation to transfer of goods by street and issues consignment be aware, by whatever name called. gst full form india

The Service Provider should be a Commercial Concern – The provider shall be a commercial concern, and accordingly, an individual (i. e., a proprietorship firm) is outside the opportunity of the service service provider, otherwise the legislature would have employed the definition of “any person” rather than “any commercial concern”. The concern for taxability of specified services under this title should be a commercial concern but whether such specified services are definitely the business of such concern, is not the required condition. 

By making use of various words in meanings, the legislature never planned that mere locating a signboard by an person, such individual shall be treated ad advertisement matter. A signboard to point the name of the trader, i. e., the title of the control, the nature of the trade, location or address does not convert an individual into a commercial concern. Tax is on the provider by not linking the quantum of business of the company. Merely on the most basic of location, or by putting a signboard at his place, or by giving a title to the trade, or on account of the segment of business, such specific, i. e., the exclusive business shall not be converted to a commercial concern.

The word “commercial concern” is a blend of two words- one is “concern”, which is associated by the word “commerce”. It means a firm signed up under section 25 of the Companies Act, 1956; a charitable or strict trust or an educational institution, though these are a problem but due to shortage of profit oriented corporation, these will not be called as commercial matter. And for the word-concern at least, more than one beneficiary shall be required.

A reference could also be taken from Devilal Kutir Udyog sixth is v. CCE (127) ELT 143(T) read with (130) ELT A94.

Meaning of Taxable Service – Taxable service for that purpose means any service provided to a customer, by a goods transport agency, in relation to transport of goods by road in goods carriage – section 65(105)(zzp) of the Funding Act 1994.

Meaning of products Carriage – The term “goods carriage” as defined by section 2(14) of the Motor Automobiles Act, 1988 means.

“Goods carriage” means any motor unit vehicle constructed or tailored for use solely for the carriage of goods; or any automobile not so constructed or designed when used for the carriage of goods.

Interpretation of Motor Vehicle – Motor vehicle or vehicle means any mechanically powered vehicle adapted to be used after roads whether the benefits of population is sent thereto from an exterior or internal service and includes a chassis to which a body is not attached and a custom, but does not include a vehicle running after fixed rails or a vehicle of special type adopted for use only in a factory or in any other encapsulated premises or an automobile having less than four rims fitted with engine capacity of not exceeding [twenty five cubic centimeters] – Section 2(28) of the Motor Cars Act, 1988.

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