Regarding Service Tax on Transport.

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K.Sridhar (Querist)
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14 August 2007 Sir,

I want to Know the Service Tax payable on Goods Transportation(Through Road)and Detail Provision regarding the amount on which the service tax is payable. Is there any exemption amount on which the service tax is not applicable.

with regards

Kotina Shridhar

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)
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15 August 2007 Dear Sir,

Your question invites very elaborate reply. The brief reply is-

If your previous year's taxable services' value is for less than Rs 8 lakhs, in the current year upto first 8 lakhs your receipts are exempt.

A GTA (by road) is entitled for 75% abatement. Thus only 25% of his collection is taxable. In other words, service tax rate applicable for GTA (by road) is 3.09%.

A GTA need not collect & pay service tax from-

A company regd under Companies Act, A registered firm, a registered co op society or society,a registered factory/excise dealer

The aforesaid should pay service tax if they receive service from GTA.

In other words, only when GTA renders service to individual/HUF/unregistered AOP it has to collect & pay service tax.

Any consignment upto Rs 750 is not taxable. Any consignment vehicle with service charge collection upto Rs 1500 is not taxable. Egg, vegetable, fruit and milk are not subjected to service tax at all.

K.Sridhar

K.Sridhar (Querist)
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16 August 2007 Thanks for the above clarification.

Sir,
Please clarrify this sentence any consignment vehicle with service charge collection up to Rs 1500 is not taxable.
One consignment and one consignment vehicle means what?
For example for Transporting 150MT of Coal It requires 15 Trucks.Now my question is Servicetax is applicable on the whole contract for 150 MT or one Trip of 10MT?

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Sanjeev Kumar Varshney

Sanjeev Kumar Varshney (Expert)
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16 August 2007 The limit of Rs 1500/- is applicable for full truck load means truck / vehicle carrying only your goods. If each truck carry separate GR below Rs 1500/- then no Service Tax liability on you.