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Service tax on transports

vishal (accountant) (65 Points)

27 January 2009

A firm has paid Rs. 20 Lacs as a Transportation chg. which includes Rly freight & Road Transportation Chgs. in some bills service tax is not mentioned by local transporter. kindly suggest me whether any tax is liable to me for those bills.
who is the liable person (consigner or consignee) to pay service tax & if it is applicable to consignee then @ what percent we have to pay.

Waiting for your reply

Regards
vishal dosi

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2 Replies

Shyam Lal Naik (Service) (6156 Points)
Replied 27 January 2009

You have not mentioned the period during which the services has been received. The response is based on current service tax law.

It is assumed that the firm falls under one of the seven specified catagories.

There is no service tax on Railway freight. You have to pay tax on freight for transportation of goods by road only.

An abetment of 75% of freight paid is available. You need to pay tax on 25% of the freight only.

Normally, the person, who is liable to pay the freight is the liable to pay the tax.

Rate of tax is uniform for all services, ie. 12.36%.

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lokeshlovi (C.A.student) (49 Points)
Replied 28 January 2009

i thnk d party makng bill is liable to pay service tax buti m not sure coz thr r sum recent changes inservice tax laws i ll tell u more in detail 2maro....(service tax is vanished from subtransporter's services)