CA. Harinder Kumar
( Expert )
05 August 2008
Every goods transport agency which books the goods for transportation by road nad issue a consignment note shall be liable to pay service tax and shall be treated as an assessee for service tax purpose. In organised sector consignor or consignee who pays the freigt shall be the person liable to pay service tax.
Notification no. 35/2004 st 3/12/2004 is to include in person liable in case of goods booking agencies following person as consignor ot consignee
* a factory, company, corporation, regd. society, cooperative society, regd. dealer of exciseable goods, body corporation, partnership firm
as in your case you are a regd. dealer so if you are paying freight above Rs. 1500 per goods carriage or Rs. 750 per individual consignment. you are liable to pay service tax.
You have to register with central excise dept. under GTA services
Tax rate is basic 12%, EC 2%, SHEC 1%
It comes around 12.36%
but you will get 75% abatement on gross freight paid
for example if you paid freight of Rs. 1000.00 then service tax will be calculated as follows:
Freight paid 1000.00
- 75% abatement 750.00
balance charagable 250.00
S Tax payable @ 12.36% 31.00