SERVICE TAX ON TRANSPOTATION

This query is : Resolved

CA. abhinav kumar (Querist)
Follow

25 July 2009 Sir ,
1) I want to know that if we are registered as service a service provider under construction service & we purchase some material through transpotation by road. total amount paid to transpoter is below 10lacs(small service provider)and transpoter not charged service tax in their Bill. Who is liable to pay servicetax/who is the defaulter if service tax not paid to department.
Kindly explain in detail.
2) what will be liablity if we use transpotation facility for providing exempted services.
Thankyou

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

27 July 2009 Transportation service is taxable. use of such transportation is irrelevant.
If you fall in any of the seven categories, which it appears that you fall, liability to pay service tax is on you. Yes, if the transportation services are input services to provide output service, you are eligible for credit.