Service tax on Goods Transported by road
This query is : Resolved
14 February 2009
Dear sir
Our company is engaged in dealing in tobacco. We purchase tobacco from distance places and also send tobacco to factories for packing. We pay hire whihc some times is more than Rs 1500.00. My question is under the amended guidelines by department, is service tax payable on the hire when it exceeds Rs 1500.00, to transporter, who is an individual and the service is not provided by any tranport agency.
Kindly advise at the earliest
Thanks and regards
Subrahmanyam
Our company is engaged in dealing in tobacco. We purchase tobacco from distance places and also send tobacco to factories for packing. We pay hire whihc some times is more than Rs 1500.00. My question is under the amended guidelines by department, is service tax payable on the hire when it exceeds Rs 1500.00, to transporter, who is an individual and the service is not provided by any tranport agency.
Kindly advise at the earliest
Thanks and regards
Subrahmanyam
15 February 2009
The following is extracted from Chapter 102 (Page 505) of 11th edition of Taxmann's Service Tax Ready Reckoner authored by Sri V S Datey
"If driver of goods carriage is self employed either by taking vehicle on rent from other or as owner of one or two vehicles,...He himself receives freight. He would not be liable to service tax"
Based on the above, it appears to me that service tax is not payable
"If driver of goods carriage is self employed either by taking vehicle on rent from other or as owner of one or two vehicles,...He himself receives freight. He would not be liable to service tax"
Based on the above, it appears to me that service tax is not payable
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