Service tax on transportation income

This query is : Resolved

Harismohan (Querist)
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31 December 2013 Dear Sirs

My client is (partner ship firm) manufacturer of ready mix concrete. They own some 20 ready mix concrete vehicles for transporting those concrete. Client is invoice the concrete value only with excise and vat percentage. And also separately billed for transport charges for delivering the concrete at site. (Those peoples are end users). Whether any service tax liability is attracted to this transportation income. Please clarify the same.

S.Mohan
Accountant

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 January 2014 most probably yes as it is a service.

Harismohan

Harismohan (Querist)
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01 January 2014 If it is service means which person liable to pay service tax. Service provider or receiver? Service receiver is individual and the end users. Please clarify the same

Annu Agarwal

Annu Agarwal (Expert)
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01 January 2014 As per my view if your client is not availing the services of Any Goods Transport agency for transportation of goods then no service tax shall be levied.
Therfore no service tax liability is attracted on this transportation charges.

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