Transportation of Goods by Road in a goods carriage

QUERRY 8
Dear Seniors/Freinds,
Transportation of Goods by Road in a goods carriage is taxable under the head GTA service in Service Tax laws.
But when the services of any transport contractor is used for transporation
of raw materials/finished goods within the factory premises(by means of truck/dumpers), whether this service is taxable under service tax under the head GTA. If not, under which head in service tax, the same will be taxable?
Whether the service receiver will be entitled to take Cenvat credit of the same in above case as transporter doesn't issue any consignment note for the
same as the goods doesn't move outside the factory premises?
Kindly request to clarify the matter.
Best Regards
CA Dipak TodaniChartered Accountants53, N S B Road,RaniganjMob No. 09333847437
REPLY TO QUERRY 8
Dear Deepak,
Please refer to your query below.
Taxable event towards charging service tax under GTA category is a)Transportation of Goods by Road in a goods carriage and b) such transportersshould issue consignment note. Hence, both these conditions arepre-requirement for taxability.
The concept is to bring organised transport sector into taxability and notthe driver's with one or two trucks.
As regards activity involving movement of raw materials/finished goodswithin factory premises is concerned, same may appropriate fall under "CargoHandling Service". However, in such event liability of Service tax would beon provider of service.
Trust above clarification would meet your requirement.
Regards

REPLY TO QUERRY 8
Dear Friend,
I think that inward transportation service is taxable as GTA and service tax paid in this regard is also cenvatable subject to Rule 3 of CCR,2004.
With Regards,
Vinod.