service tax on transport expenses

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This query is : Resolved

manjunath prabhu s (Querist)

19 November 2008 A 100% exporting company, purchases some of its raw material ie fish, from andhra pradesh and then transports it to the state of kerala by trucks, hired by them from the truck owners.

The fish are purchased by the companys agent in the other state and loads them on this truck that has been sent to pick up.

The company pays freight charges to the truck owner in the state of kerala.

Whether the company is liable to pay service tax to the truck owner?

Ravikumar.G

Ravikumar.G (Expert)

19 November 2008 As per rule 2(1)(d)(v) of Service Tax Rules, Consignor or consignee who is paying freight will be liable to pay service tax, if consignor or consignee is any one of the following -
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948).
(b) any company formed or registered under the Companies Act, 1956 (1 of 1956).
(c) any corporation established by or under any law.
(d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India.
(e) any co-operative society established by or under any law.
(f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder.
(g) any body corporate established, or a partnership firm registered, by or under any law.

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