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Transportation service ta

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Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2012 Dear expert
my quetion is- i clint is engaged in manufacturing process.and pay the transporter chrge like cartage outward and inward (above 750) and (below 750)in such bill are not mention any service tax.

so how can we calculation on serivce tax liablilty.

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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04 February 2012 Assuming you are company and since you are service receiver and paying freight amount for transportation, you are the person liable to pay service tax.......Freight amount below Rs. 750 is exempt from service tax...

Further abatement of 75% is allowed. Therefore, depending on the case, service tax shall be caluculated at 25% of the frieght amount . Present rate is 10.30%

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