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Whether service tax charged for cartage paid by software co?

CA kanika (JOB) (60 Points)

20 July 2012

an partnership firm doing software business and paying cartage as general expense, is firm liable to pay service tax??

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5 Replies

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 21 July 2012

If it is a service as per the definition provided in the clause 44 of section 65B of the Finance Act, then service tax will be levied.

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 21 July 2012

Please elabore the nature of cartage

CA kanika (JOB) (60 Points)
Replied 21 July 2012

cartage is like autobadha, for shifting some material from one office to another within same city.

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 21 July 2012

Then it will be taxable as a GTA service where the service receiver is liable to pay service tax, provided that the transporter raises a consignment note for the purpose of transportation of the said material. It would be liable to service tax only when the cost of the individual consignment exceeds Rs 750/-. Hope it is clear now.