Service tax on debit note.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2013 Can we charged service tax on any debit note of transportation? or we have to create separate transportation invoice?

and also confirm % of service tax on Debit note or Invoice?

CA Parul Saxena online

CA Parul Saxena online

(Expert)
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16 September 2013 yes you can charge service tax on debit note..

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2013 Thank you.. However how much Service Tax is liable on debit note of transportation (approx value of transportation will be Rs. 6 Lac)
Also another problem is :-
Sometimes we use tempo or auto ricksaw for transportation whose per trip charges will be around Rs. 1000/- (more than Rs. 750/-) so in that case what shall we do. Are we liable to charge service tax on it?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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24 July 2025 Here's a detailed response to your query on service tax related to debit notes and transportation charges:

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### **Service Tax on Debit Note for Transportation**

* **Can service tax be charged on a debit note?**
Yes, **service tax can be charged on a debit note**, provided it represents a taxable service. The debit note is essentially a supplementary invoice for additional charges or adjustments, so service tax applies similarly as on an invoice.

* **What rate of service tax applies?**
For **taxable transportation services**, the applicable service tax rate was generally **14% plus applicable cesses** (e.g., Swachh Bharat Cess and Krishi Kalyan Cess), but this may vary depending on the specific financial year or amendments.
*Note: You should verify the exact service tax rate applicable for your period.*

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### **Regarding Transportation Charges Using Tempo or Auto Rickshaw**

* **Are you liable to charge service tax on small per-trip charges (e.g., Rs. 1000/-)?**
The service tax law has a **threshold exemption for transportation services** under certain conditions.

* **Threshold for Exemption:**
For transportation of goods by road (Goods Transport Agency or GTA services), **if the amount charged for a single consignment is Rs. 750 or less, service tax is not applicable**.

* **In your case:**
Since Rs. 1000/- is **above the Rs. 750 limit**, service tax **will be applicable** on these transportation charges.

* **Important:**
Even if the vehicle is a tempo or auto rickshaw, if you are providing taxable transportation service, service tax is leviable on the amount charged.

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### **Summary**

| Situation | Service Tax Applicability |
| -------------------------------------------- | ---------------------------------------------------------- |
| Debit note issued for transportation charges | Service tax applicable at standard rate (e.g., 14% + cess) |
| Per trip charge for transportation ≤ Rs. 750 | No service tax applicable |
| Per trip charge for transportation > Rs. 750 | Service tax applicable |

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### **Additional Suggestion**

* Make sure to **issue separate debit notes or invoices for transportation charges**, clearly specifying the taxable value and service tax separately.
* Maintain documentation for each transportation charge, especially when using multiple small vehicles.

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If you want, I can help you draft a sample invoice or debit note format for transportation services including service tax details. Would you like that?

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