Goods Transport Agency under Reverse Charge

Exemption For Transport of Goods by Road

We know that there is Reverse charge on this Service i.e. Service Receiver pays Service Tax

However,in case ,service receiver is an exporter,he does not have to pay Service Tax in following cases

Transport of goods by road Covered in Exemption

• Transport of Goods from any container freight station (CFS) or inland container depot (ICD) to port/airport of exports/ Land Custom Station
• Transport of Goods   from the place of  removal (i.e. factory) to CFS, ICD, port or airport of exports;/ Land Custom Station

AMENDMENT

Earlier only trannsport of goods to port/airport were covered, 

now Land Custom Station also covered with effect from 1.4.15

(Notification No. 31/2012 ST dated 20.06.2012) as modified with Notification No. 4/2015 ST dated 01.03.2015)

 Conditions to be Satisfied by Exporter

• Exporter should be registered with export promotion councils
• He should hold IEC Code (Import Exprt Code)
• They are registered in Service Tax/Excise and are otherwise required to pay Service tax under Reverse Charge