13 November 2011
Dear Friends, We receive the matls. (steel) from the supplier and we pay Transportation charges to the Lorry/Tempo.(Same City) Pls. Help me with whether it attracts Service Tax or not If yes, what is the rate of S.tax?
13 November 2011
Service tax is not applicable on three wheelers, ie. Tempo.
Freight paid to indivisual truck/lorry owners does not attract Service tax.(Ref. Finance Minister's Budget Speech while presenting Finance Bill (No. 2), 2004.
It is only when, transportation service is rendered by a Goods Transport Agent, the service becomes taxable.
The transportation within the same city is not relevant.
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