Are consignment notes mandatory?

Therefore, in the Service Tax regime, issuance of Consignment Note (C/N) was integral and mandatory requirement before any road transporter could be brought within the ambit of GTA.

What is consignment note in transportation?

A consignment note is a document regarding the carriage of goods by road which declares the contract of carriage and includes the instructions given to the carrier and proves the contract of carriage.

Is service tax applicable on freight charges?

Taking into account the special nature of the goods transport agency (GTA) service, it is being exempted from the payment of service tax unconditionally to the extent of 75% of the freight. In other words, service tax is required to be paid only on 25% of the freight irrespective of who pays the service tax.

What is taxable value in service tax?

Taxable Value “Value of taxable service” as defined under Section 67 of the aforesaid Act means the gross amount charged by the service provider for the taxable service rendered by him.

Who can issue consignment note?

Goods Transport Agency
As per Section 65B (26) of the Finance Act, 1994; “Goods Transport Agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called”.

What is included in consignment note?

As per said rule, a consignment note means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered and contains the name of the consignor and consignee, registration number of the goods carriage in which …

Who is responsible for consignment note?

As per Section 65B (26) of the Finance Act, 1994; “Goods Transport Agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called”.

Who is responsible for service tax on transportation?

As per clause B of Rule 2(1)(d) of Service Tax Rules, 1994 any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage is liable to pay service tax.

Is service tax applicable on loading and unloading charges?

16 August 2012 Paying the loading & unloading charges will not come under service tax for the service provider since these are all expenses for him.

What is FCM under GST?

Under forward charge supplier was paying tax but reverse charge or RCM has cast responsibility on recipient to make payment of GST directly to the Government though recipient will eligible to claim ITC on such tax payment. Reverse charge has been defined under section 2(98) of CGST Act, 2017 and SGST Act, 2017.

Is GST registration compulsory for transporters?

Therefore, a Goods Transport Agency is not required to register under GST if he is exclusively engaged in transportation goods where the tax is required to be paid under reverse charge by the recipient of the goods (even if the turnover exceeds 20 lakhs).

Is consignment note same as bill of lading?

An air waybill (AWB), also known as an air consignment note, is a type of bill of lading. However, an AWB serves a similar function to ocean bills of lading, but an AWB is issued in non-negotiable form, meaning there’s less protection with an AWB versus bills of lading.

What is the difference between consignment note and bill of lading?

Buyers could collect the consignment from the carrier at the airport of destination by simply proving their identities against the company information stated on the consignee part of the air waybill. Bill of lading on the other hand, when issued in negotiable form, represents title to the goods.

Is consignment note same as Bill of Lading?

Is GST no compulsory for transporter?

Under GTA, a transporter must obtain a GST registration based on their aggregate turnover exceeding INR 20 lakhs or INR 10 lakhs for a unique category in a financial year. GTA has to pay 12% GST on all the GTA services for the financial year provided by them.

Who is eligible for service tax?

Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.