Ancillary services by Goods Transport Firm, Ancillary services by Goods Transport Firm now not needed to be segregated into parts for the purpose of Service Tax. Check More Information regarding Ancillary services by Item Transport Agency from Below.
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Secondary services by Product Transportation Agency
Significance of Product Transport Agency
Product Transport Agency (GTA) has been defined to indicate any person who provides service to an individual in relation to transport of products by roadway and issues consignment note, by whatever name called.
Nature of services supplied by GTA (Product Transportation Agency)
The service supplied is a composite service which might include various secondary services such as packing/ unloading, packing/unpacking, transhipment, short-term storage and so on, which are offered in the course of transportation of items by roadway.
These secondary services may be offered by GTA himself or might be sub-contracted by the GTA. In either case, for the service provided, GTA concerns a consignment note and the billing provided by the GTA for offering the said service consists of the value of supplementary services offered in the course of transport of goods by roadway. These services are not offered as independent activities however are the means for effective arrangement of the principal service, specifically, the transportation of products by road.
Principles in Section 66 F of Financing Act, 1994 concerning composite services
A single composite service need not be gotten into its elements and considered as making up different services, if it is supplied as such in the common course of service. Thus, a composite service, even if it includes more than one service, need to be treated as a single service based on the primary or principal service. While taking a view, both the type and compound of the deal are to be taken into account. The directing principle is to identify the necessary functions of the deal. The analysis of specified descriptions of services in such cases will be based upon the concept of interpretation enumerated in area 66 F of the Financing Act,1994 Thus, if secondary services are provided in the course of transportation of products by roadway and the charges for such services are included in the billing issued by the GTA, and not by any other individual, such services would form part of GTA service.
Outcome of the notice
The abatement of 70%, currently suitable to GTA service, would be available on ancillary services too.
More Clarification
t has actually also been clarified that transport of products by roadway by a GTA, in cases where GTA carries out to reach/deliver the goods at location within a specified time, ought to be considered as Solutions of goods transport agency in relation to transportation of items for the purpose of notification No.2012, serial number 7, so long as
( a) the entire transport of products is by roadway; and
( b) The GTA problems a consignment note, by whatever name called.
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