Transport charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2016 Dear Sir,
Suppose a dealer raise invoice in following manner -

Amount 100000/-
VAT 5% - 5000/-
Total - 105000/-
Transport Charges 2500/-
Grand total - 107500/-

Whether the above mentioned transport charges attract service tax liability ?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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23 April 2016 No you don't need to pay service tax on transportation amount charged on bill... It simply reimbursement of expenses... And you not paying freight to the Good transport agency... The seller is required to pay service tax not you...

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2016 We are the seller, Whether You mean that we (the seller) have to pay in the bilty raised by transporter.
or
we would be consider as service provider that we hired vehical from transport co. for purchaser ?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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26 April 2016 In case you are the seller.. you need to pay service tax on the value of BILTY raised by the transporter..

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2016 that mean we dont need to obtain service tax no?