Service tax liability on local transport payment

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Rahul Prajapati (Querist)
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03 June 2013 Dear Sir/Madam,

I Want to know that what will be the service tax Liability arise while payment to Local Transportation who is an Individual, and not giving any Consignment Note on behalf of that Transport.

What Will be the Accounting Entry Made of this transaction?

Ganeshbabu K

Ganeshbabu K (Expert)
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14 June 2013 1)No service tax if consignment note not issued. Simple transport Bill is not ‘consignment note’

2)simple expence entry.

Thanks & regards
Ganeshbabu k

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Rahul Prajapati

Rahul Prajapati (Querist)
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15 June 2013 Thank you Sir

Can i Ask you one more Question Sir?

If we are Charged Transportation (Freight)to party (Debtor) with Material Bill, is there any Liability made on us ?

I mean that Transportation Charged with Service Tax or not ?

Pls gives your Kind rply ..........

Ganeshbabu K

Ganeshbabu K (Expert)
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15 June 2013 1)Person liable to freight is liable to pay
service tax on GTA if he is body corporate,
factory, registered dealer under Central
excise, society, cooperative society,
partnership firm (registered or not).

2)it does not matter whether you are charging in invoice or not..(if you show transportation in invoice no service tax will appear on bill)

Thanks & regards
Ganeshbabu k

Ganeshbabu K

Ganeshbabu K (Expert)
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15 June 2013 3)as i said in point 1..as per payments
(i)if customer is liable to pay freight..even though you pay freight to service provider also..it is nothing but you have paid on behalf of customer and customer is liable to discharge service tax liability.

(ii)in the same way if company is liable to pay freight as per payment terms company is liable to discharge GTA.

Thanks & regards
Ganeshbabu k

Rahul Prajapati

Rahul Prajapati (Querist)
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17 June 2013 Thank You Sir........

Sir, We Are Greenhouse Construction & Greenhouse Technologies Mfg. Co., we are Doing such Construction with the Help of Local Contractors & they will not Provide us Service Tax Invoice B'coz of Exemption Limit, so is that Considered in Work Contract?

If yes than What will be the Service Tax Liability arias & How much to whom ?

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