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Service Tax on Transportation

madhusudan (Professional) (267 Points)

04 September 2007

Dear Sir,

A Pvt. Ltd company has paid transportation amounting to Rs. 20 Lacs during the financial year 2006-07. The bill amount individually was less than Rs. 1400/- each. Please state its service tax consequences if the amount was paid to individual carriers i.e. they were not paid to goods transport agencies.

Thanking You

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50 Replies

suresh (Manager- indirect tax) (45 Points)
Replied 04 September 2007

In my view, service tax liabliity is on the goods transport agency and on the individual transporters. Further as per service tax rules exemption to small consignments was granted in two situations, one situation is that the gross amount charged on all the consignments transported in a goods carriage in a particular trip does not exceed Rs. 1,500/0 and the second situation is that the gross amount charged on an individual consignemnt transported in a goods carriage does not exceed Rs. 750/-

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madhusudan (Professional) (267 Points)
Replied 04 September 2007

Dear Suresh, I have also the same view, but I need some more clarifications

kanta jain (chartered accountants) (29 Points)
Replied 10 September 2007

Dear Madhusudan ji,
you mentioned in your querry the individual bill amount of Rs.1400/-. The exemption is available if gross amount charged on an individual consigement transported in a goods carrage does not exceed Rs.1500/ or an individual consignment does not exceed 750/-.- wef 01/01/2005.

Abatement u/s 65 (105) (zzp): Abatement of 75% is available to consignors or consignees.
The above provisions are applicable if transport service is provided by transport booking agent........Ven. Finance minister stated in budget speech on 08/07/2004... 58 services have been brought under the net so far.I propose to add some more this year. These are ....................., services provided by transport booking agent--------------------------------I may clarify that their is no intention to levy srevice tax on truck owners or truck operators.

in your case , the transport has been paid to individual goods carrier. GTA includes any person ( wef 01/05/2006) who provides services in relation to transport of goods by road and issues consignement note .So, in your case consignment note is mandatory.
note:-
For the period prior to 01/05/2006, commercial concern were liable to tax, wef 01/05/2006, any person
kanta_jain @ rediffmail.com

(Guest)

Dear Sir, We are a Pvt. Limited co. we receive service from individual transport agencies for a month upto Rs.25000 & we pay service tax on behalf of them. We can claim 75% abatement.

Dinessh Kumar (Articled Asst.,) (193 Points)
Replied 24 September 2007

Hi Senthil, You can claim the abatement. You can deduct for the 25% of the bill amount. In turn, you can claim the 12.36% tax on 25% of the amount as Service Tax Input. For the purpose of claiming abatement, the transporter should not avail cenvat credit

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(Guest)

dear sir I want to know the svice tax rates for assestment year 2007/08 and 2008/09 in all firms Akhilesh

(Guest)

Dear Sir, We are menufeacturer of Pharmaceuticals Product.We are also receive and dispatch the third party purchase goods.Pl verify our current practice for pay service tax (GTA) . 1.For incomming Goods a , We are we are paying service tax on 25% and takes the credit. 2.For out gooing goods, 1.For self menufectring goods ,we are paying service tax on 25% and takes the credit. 2.1.For third party purchase goods ,we are paying service tax on 25% and not takeing the credit. Alkesh Trivedi

(Guest)

Dear Sir I am working at export dept,& we are doing export for various parties for that purpose we have our own Closed body truck ( CBT ). In What amount should we pay service tax on gross amount @ 12.36% or we have to take 25% of gross amount & that 25% amount we have to pay service tax, pls. advice me.

ASHISH YADAV (Chartered Accountant) (119 Points)
Replied 20 February 2008

Dear Mr. Birjesh As ur are saying that u are using paying at 25% amount service tax on outgoing goods. so for you knowledge when this abetment is used the service tax u have paid i.e (gross amount*25%)*12.23%. then it is booked as ur cost in ur books and not any input so u cannot take input credit. If u want to take input credit then pay as normal not using abetment.and book as service tax input. So abetment of 25% is used for making cost as carraige outward in ur case.

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(Guest)

Individual transporter had not issued any consignment note whether service recipient is liable to pay service tax

(Guest)

what is the service tax for services received transport agencies after abetment for the period 2008-2009

(Guest)

what is the service tax payable for the services received from the transport agencies after abetment for the period 2008-2009

(Guest)

Dear Sir I want to know the tax liabilities in case of transportation. our has a company and during the financial year-07-08, i had paid transportation Rs. 25 lakhs. since goods transport agency has exemption up to 10 lakhs. whether we have to pay service tax or not, furthe as abatement is available to the extent of 75%. then whether it will fall under exemption (.25*25 lakh) 6.25 lakhs is under limit Please reply me as early as possible. Thanking You Chandan Burnwal