Service tax not changed on individual customers
This query is : Resolved
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
13 July 2016
no reply ,pl send your opinions
16 July 2016
reply please
30 July 2016
no giving reply
28 September 2016
no response
24 July 2025
Got it! Here’s a quick guide on charging service tax in your transportation business, especially for individual customers:
---
### 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.
---
### 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.
---
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!
---
### 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.
---
### 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.
---
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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