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Service tax on LR & Door to Door delivery charges

This query is : Resolved 

10 December 2009 Can a GTA service provider charge service tax on LR charges & door to door delivery charges??

11 December 2009 if he is registered in service tax then he can charged service tax.

11 December 2009 Before these charges freight is below 750/- criteria, but after chagres it exceeds 750/ limit, hence GTA service provider charges ST.
Therefore my Question is why cant he (in invoicing) charge LR & D2D chrges after freight amount, so that service can be saved?
Moreover, LR & D2D charges are fixed, so how can we say they are services, they are just documentaion charges you can say.




11 December 2009 Normally the incidental services are also forming part of the main service. In case of GTA the reciver is to pay the ST.

11 December 2009 sir i argee with you, that receipent will pay ST and can tak credit, but this doesnt mean that he should pay extra and it results in unnecessary blockage of fund affecting working capital. can u surely say that ST can be levied on LR & D2D charges. please make me clear.

Thank you

11 December 2009 First of all it is vital to decide whether GTA is required to pay tax and in case he is person liable to pay tax, then the service tax is leviable on the gross amount which includes LR Charges and door to door charges. These charges are intrinsic part of freight and can not be excluded.

For further query, feel free to write sanjayinfbd@yahoo.com(M-09350048731)


13 December 2009 thank you.



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