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

CA Parul Saxena (Expert)
Follow

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)
Follow

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

---

### **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.*

---

### **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.

---

### **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 |

---

### **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.

---

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?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now