We are business of poly plastic (trading & mfg). For transportation we hire local transporters from the market. During billing they don't charge Service Tax @ 2.575% in their bills. In this case, please let us know what we are suppose to do.Are we liable to pay service tax with same rate on behalf of the transporter or not?
Please treat this matter urgent & resolve the query at the earliest.
12 June 2010
Service provided by indivisual transporter is not taxable. This view is supported by the Finance minister's speech as well as judicial rulings.
Only service provided by Transport Agents are taxable, which is not the case at hand.
In the instant case, you are not required to pay service tax.