my partnership business is Trading in Tiles, we are paying lorry freight around Rs.50000/- one consignment. Every freight bill, included in service tax.
My doubt is we are pay service tax or not. And Local Cartage expenses (not in a vehicle)above Rs.750 is liable or not.
08 March 2013
1. AS PER NOTI. NO. 30/2012 ST DTD. 20.06.12, PARTNERSHIP FIRM IS LIABLE TO PAY SERVICE TAX ON FREIGHT PAID,WHETHER IT IS TRADING OR MANUFACTURING UNIT. THEREFORE, YOU HAVE TO PAY SERVICE TAX.
2. NO SERVICE TAX WILL BE PAID ON FREIGHT UP TO RS. 750/= FOR DIFFERENT CONSIGNMENT IN A LORRY AND UP TO RS. 1500/= FOR SINGLE CONSIGNMENT IN A LORRY.
3. NO SERVICE TAX IS APPLICABLE ON LOCAL CARTAGE WHEN YOU SEND YOUR GOODS THROUGH AUTO, TEMPO, RICKSHAW ETC. OTHER THAN TRANSPORT LORRY.
HOPE YOUR DOUBT MAY BE VERY CLEAR BY MY ABOVE REPLY. THANKS. Rajeev Kumar Garg (M.Com, L.L.B.) Consultant (Excise, Customs & Service Tax) Ph. no. +91 7500802402