Service Tax - examption

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2011 Dear All,

Please confirm,whether in following cases Service tax examption procedure pertaining to the freight payment below Rs. 750/- per trip per consignee & Rs. 1500/- per goods carriage is applicable or not ?

Case -(1) When an individual submitted his printed freight bill (per trip basis) for despatched materials through different goods vehicles and not taken his service tax registration.
He has also not provided any LR copies for the same.

Example :
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Mr.X has submitted following freight bill (per trip basis)with out any LR...

Rs. 500 per trip X 5 trips = Rs. 2500/-
Rs. 600 per trip X 6 trips = Rs. 3600/-
Rs. 750 per trip X 10 trips = Rs. 7500/-
Rs. 1000 per trip X 5 trips = Rs. 5000/-
Rs. 1500 per trip X 10 Trip = Rs. 15,000/-
Rs. 2000 per trip X 5 Trip = Rs. 10,000/-

Total Bill Rs. 43,600/-
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Case -(2) When we are arranging goods vehicles from road side & paid freight amount less than Rs. 1500/- in cash with out received any bill & LR.

HOW MUCH SERVICE TAX , WE WILL HAVE TO PAY AS PER RULE FOR ABOVE CASES?

Regards

S Mullick

U S Sharma

U S Sharma (Expert)
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15 May 2011 all trips above 1500/0 are subject to service tax.

you have to pay 10.3% on 25% of such trips

for availment of 75% abatement, get a declaration from transporter that they are not availing any input credit of capital goods.

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