Service tax on transportation of goods by road

This query is : Resolved 

09 September 2011 QUESTION: ONE CONSIGNOR SENDS THE CONSIGNMENT TO A SINGLE CONSIGNEE AND PAY FREIGHT AMOUNT RS. 1,300/- FOR FULL TRUCK.

WILL SERVICE TAX BE PAYABLE ON THIS TRANSACTION OR THIS TRANSACTION IS EXEMPT, SINCE AMOUNT PAID IS LESS THAN RS.1,500/- FOR FULL TRUCK.

09 September 2011 The amount will be liable for service tax

The criteria for single transaction is Rs. 750/- only and in total it should not exceed in totality Rs. 1500/- in a year to claim exemption under such transaction.

09 September 2011 If total amount charged for all consignments carried in a goods carriage exceed Rs.1,500/- or amount charged on each individual consignment exceeds 750/-, then service tax liability arises.
By this, you can claim exemption, because the gross amount charged for whole carriage does not exceed Rs.1,500/-.




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