Regarding Service Tax of a Factory established on 15/10/07

This query is : Resolved

sunil (Querist)
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28 June 2009 Sir,
This is for query regarding the service tax on the below mentioned points.
1) Is service tax is exempted on first year of a factory (establishement Date .15th Oct 2007) like TDS in the first year. It is in the state of Assam and the firm also gets Transport subsidy @ 90 % on fright borne by Siliguri to Jorhat (Rs.74.09 per Qntls).

The prorprietorship firm transhipments goods from a source station a destination by Road from local Trucks of state.

2)Also the proprietorship firm brings goods from outside state in which bilty is to made and no service tax is paid by transporter.
Is the proprietor is liable to pay service tax on behalf of transportar.

3) If service tax is to paid by the proprietorship firm what will be quantum of rate.

Please answer me the above mentioned queries

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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29 June 2009 Since factory is one of the specified persons, the GTA should not charge the ST and the Firm though an individual would have to pay.
The rate of ST is 10.3% on 25 % of the freight paid. The transport subsidy would not be relevant.