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Payment to transporter

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)

13 September 2014

Company payment small transporter like 3 Wheeler delivery Van etc. payment is Rs. 600 - 1200 per trip. In this regards LR is compulsary to claim abatement @ 75%.

These transporter is not in position to submitt LR, solution please.

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3 Replies

Kashish Gupta (B.com (H) , ACA) (368 Points)
Replied 12 October 2014

In case if LR is not given by transporters, then service tax is not applicable at all because this transportation service in such a case would be covered under negative list.

As per definition u/s 65B, if there is a consignment note (i.e LR) then it would come under regime of services given by Goods Transport Agency. Now, if there is no LR, then it is normal case of service which is covered under Negative List.

Hence Service Tax is Not applicable at all.

For answer to your queries, you can join my community - Service Tax.

Thanks.

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Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 15 October 2014

As per N/N-25/2012, if the freight paid per vehicle is below Rs. 1500, then the same is exempted.

chandra sekar (Manager-Accounts) (387 Points)
Replied 26 October 2016

For all freight expenses, LR is compulsory not only for abetment but also, that the expenses should not getting dis allowed by IT, as there is no supporting.