CBEC vide Circular
No. 186/5/2015-ST on 05.10.2015 has provided a clarification regarding chargeability of service tax on
ancillary services provided by GTA's in the course of transportation of goods
by road.
·
GTA means any person who provides service to a person
wrt transport of goods by road.
·
Such service provided is a composite service and
includes any ancillary services like
loading/ unloading, packing/unpacking, transshipment, temporary storage etc.,
provided in the course of transportation of goods by road by GTA itself or by
sub-contractor.
·
Such single composite service if it is provided in
the ordinary course of business, is not to
be fragmented into any components as separate services. Thus, a composite
service consisting of more than one service would be treated as a single
service based on the nature of main or principal service which gives a transaction
its essential feature.
·
The abatement of 70%, as
applicable to GTA service, would be available on ancillary services which are
provided in the course of transportation of goods by road and the charges for
such services are included in the invoice issued by the GTA.
·
If GTA undertakes to deliver the goods within a
stipulated time at a particular destination, such service would also be
considered as ancillary to GTA service and abatement provisions would be applicable
for such services treating ancillary services forming part of GTA services.
