Service tax on tempo/lorry hiring

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2011 Dear Friends,
We receive the matls. (steel) from the supplier and we pay Transportation charges to the Lorry/Tempo.(Same City)
Pls. Help me with whether it attracts Service Tax or not If yes, what is the rate of S.tax?

Thanks in advance,

N V S

Shyam Lal Naik

Shyam Lal Naik (Expert)
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13 November 2011 Service tax is not applicable on three wheelers, ie. Tempo.

Freight paid to indivisual truck/lorry owners does not attract Service tax.(Ref. Finance Minister's Budget Speech while presenting Finance Bill (No. 2), 2004.

It is only when, transportation service is rendered by a Goods Transport Agent, the service becomes taxable.

The transportation within the same city is not relevant.

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