Mega exemption noti. 25/2012 entry no 21(b) & (c)

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Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2015 (i) the gross amount charged on consignments
transported in a goods carriage does not exceed
rupees one thousand five hundred; or (ii) the
gross amount charged on an individual
consignment transported in a goods carriage does
not exceed rupees seven hundred fifty

I Could not
understand the difference between the above two
points , Kindly any one please explain me where
we can claim exemption Rs. 1500/- and where
Rs. 750/- what is the difference between that two
conditions

PAWAN KUMAR

PAWAN KUMAR (Expert)

26 April 2015 Dear sir,
Please find the example for understanding the exemption scenario :
1. company A receives goods from a GTA B in a truck. No other goods are loaded in that truck. The company A pays freight of Rs. 1500/- to GTA B. No service tax is payable by any person on this consignment as it is exempted.

2. company A receives goods from a GTA B in a truck. Some other goods not belonging to the company A are also loaded in the truck. The company A pays freight of Rs. 900/- to GTA B. The freight of other goods is Rs. 500/-. Service Tax is not payable by the company A on this consignment as the total freight for the truck is Rs. 1400 which is below Rs.1500/- so it is exempted.

3.If company A receives goods from a GTA B in a truck. Some other goods not belonging to the company A are also loaded in the truck. The company A pays freight of Rs. 900/- to GTA B. The freight of other goods is Rs. 700/-. Service Tax is payable by the company A on this consignment as the total freight for the truck is Rs. 1600 which is above Rs.1500/- so company A is liable for service tax on 900/-.

I hope that this will clear you the aspects.

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