service tax on transporatation charges

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sujanapal (Querist)
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22 July 2008 hi,
Is the threshold exemption limit of Rs 10 lakhs applicable to the receiver of transport service by a firm? Say Firm X paid Rs. 2,00,000 as lorry freight during the year 2008-09 ( individual freight exceeds Rs. 750/- ) is he liable for service tax?
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Shyam Lal Naik

Shyam Lal Naik (Expert)
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10 June 2010 The exemption limit is not available to persons liable to pay tax under reverse charge basis in case of GTA.

In the instant case, tax is liable to be paid.