ST on Transportation

This query is : Resolved

Navin M Patel (Querist)
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25 March 2011 Dear all,
We purchased material for trading from outside. We received material bill and transportation bill. In transportation bill “Person Liable for Payment of Service Tax” sentence write. What about this means? When will our liability to pay service tax? After received 10 lacs bill of transport?

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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25 March 2011 in case of transporter Service tax is paid by person who paid the amount of freight if freight is paid by Consignor then liability of service tax accure in hand of consignor but if freight paid by consignee then Service tax by consignee,

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CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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25 March 2011 Also Service tax liability accure when a single transporter bill exceed Rs. 1500 also claim abatement of 75%
Like if bill for Rs. 5000 and such freight is paid by consignor then consignor pay service tax on Rs.1250 (after taking benefit of 75% from Rs. 5000) and pay service tax on Rs. 1250

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CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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25 March 2011 there is no concept of Rs. 10 lacs only consider billing amount of Rs. 1500

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