Labour charges & freight

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2012 I AM A IRON & STEEL TRADER & SUPPLIER. I PAY LOADING & UNLOADING CHARGES TO LABOURS DIRECTLY FOR LOADING & UNLOADING IRON & STEEL MATERIALS.I ALSO SEND GOODS FREE DELIVARY TO PARTIES BY HAND CARTS AND BY LORRIES WITH IN 30 KMS OF MY GODOWN. AM I LIABLE TO PAY SERVICE TAX ON LABOUR CHARGES & FREIGHT with effect from 1-7-2012.Please Reply urgently

CA Suresh Jain

CA Suresh Jain (Expert)
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09 September 2012
You have not mentioned whether you charge loading & unloading charges and freight separately or included in price of the goods.

If included in price of goods are liable for VAT and service tax is not applicable.

If charged separately :-

Loading & Unloading Charges are liable for service tax payable by you

Loacal freight by Hand cart is not liable to service tax as the same is part of negative list

For further clarification please mail the query at sureshjain.nj@gmail.com. if you please donate Rs. 100 to 500 to the "KADAM" institute engaged in education to children of construction labours.
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