Service tax – transportation service

This query is : Open

Adv. RAVINDRA KRISHNA (Querist)
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21 September 2016 Service Tax – Transportation Service – I am transport service provider, whether service-tax is applicable to it? If yes, at what rate?

Rajannaidu

Rajannaidu (Expert)
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27 September 2016 Under reverse charge, for transport service, service receiver is liable to pay service tax on 100% of the value and service provider is not liable to charge or pay service tax to government.
RCM would be applied where the service provider is Individual, HUF, proprietary firm, partnership firm or AOP located in taxable territory and service receiver is a business entity incorporate as body corporate located in taxable territory.
If you are a business entity incorporate as body corporate located in taxable territory, then you are required to pay service tax @ ST -14%. SBC -0.50% and KKC -0.50%