Sir,
Is service Tax payable on local transportation charges which are debited to Hamali & Cartage account. If so, what is the limit on which it is exempt. Rs.750/ Rs.1500
Aiyan H
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 05 March 2011
with a vehicle registration number in force,
exemption 750 when the carrige is hired for more than one consignment
exemption 1500 when the carriged is booked by consigner for single consignment.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 07 March 2011
Further, there are CESTAT decisions holding that freight paid to individual lorry owners are not liable to tax as they are not GTAs. But department is still contesting this matter.