13 August 2008
if GTA charge us freight 40000+detention charges 2000+toll tax 500 in the bill. so what is the amount for S.T it is RS 40000 of freight or gross amount of Rs. 42500/-
20 August 2008
In the instant case, value of taxable service is Rs 42000, that is, sum of Freight and Detention Charges only. There is no Service Tax liability on Rs 500 Toll Tax.
You may like to refer Para 8 in Chapter 45 on Goods Transport Services in 8th edition of Bharat's Treatise on Service Tax Law, Practice and Procedure by Sunil B Gabhawalla