Service tax not changed on individual customers

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Chander Bhan (Querist)
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12 July 2016 Dear sir, I am engaged in transportation business, I m not charging service tax to individual customers who are purchasing machines/equipments for ther own use, what is the procedures for service tax charges

Chander Bhan

Chander Bhan (Querist)
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13 July 2016 no reply ,pl send your opinions

Chander Bhan

Chander Bhan (Querist)
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16 July 2016 reply please

Chander Bhan

Chander Bhan (Querist)
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30 July 2016 no giving reply

Chander Bhan

Chander Bhan (Querist)
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28 September 2016 no response

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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24 July 2025 Got it! Here’s a quick guide on charging service tax in your transportation business, especially for individual customers:

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### Key points:

1. **Service Tax Applicability:**

* Transportation of goods is generally **exempt from service tax** if it falls under certain categories (like goods transport by road to a registered person), but many transport services are **taxable** depending on nature and client type.
* For **individual customers (non-registered persons)** who use your transportation for their own goods, service tax **may still be applicable**, depending on the service.

2. **Charging Service Tax:**

* If your transportation service is **taxable**, you **must charge service tax on your invoice** irrespective of whether the customer is an individual or a company.
* No exemption exists specifically because the customer is an individual.

3. **Procedures to Charge Service Tax:**

* **Register with Service Tax Department** if your aggregate turnover exceeds the threshold (usually Rs. 10 lakhs).
* **Issue proper invoices** with service tax component separately shown.
* **Collect service tax** from the customer and deposit it with the government on time.
* **File service tax returns** periodically.

4. **If you are not charging service tax:**

* You are liable to pay service tax **out of your pocket**, which may attract penalties and interest if audited.
* It is important to **regularize your compliance** to avoid issues.

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### What you should do:

* Verify if your transportation services to individual customers are **taxable or exempt** as per current rules.
* If taxable, **register and start charging service tax on invoices to all customers** (individuals or businesses).
* Maintain proper records and file returns regularly.

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If you want, I can help you check if your specific transportation service is taxable or exempt, and how to proceed with registration and invoicing. Just share a few more details!

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