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Service Tax on Transportation

arundavid (sdfsdfsdf) (60 Points)

05 September 2009

Who is liable to pay Service Tax on Transportation Services?

A Ltd. received the service from the Transportation company? The bill includes ST.

Inthis condition, whether A ltd. has to pay it directly to the ST department or Transportation provider will collect it from A ltd. and pay to ST department?

Help me..............

Is there any input ST option in this case???

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11 Replies

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 06 September 2009

Originally posted by :arun
"	Who is liable to pay Service Tax on Transportation Services? A Ltd. received the service from the Transportation company? The bill includes ST. Inthis condition, whether A ltd. has to pay it directly to the ST department or Transportation provider will collect it from A ltd. and pay to ST department? Help me.............. Is there any input ST option in this case???	"

Transport company is billing to you so you pay the SERVICE TAX to Transporter. In some specific cases Transport company mentions in there BILLS "The Service tAX will be paid by the Company" in such occation the company pays the SERVICE TAX to SERVICE TAX AUTHORITY

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 06 September 2009

Originally posted by :EKALABYA TALUKDAR
"	Originally posted by :arun " Who is liable to pay Service Tax on Transportation Services? A Ltd. received the service from the Transportation company? The bill includes ST. Inthis condition, whether A ltd. has to pay it directly to the ST department or Transportation provider will collect it from A ltd. and pay to ST department? Help me.............. Is there any input ST option in this case??? " Transport company is billing to you so you pay the SERVICE TAX to Transporter. In some specific cases Transport company mentions in there BILLS "The Service tAX will be paid by the Company" in such occation the company pays the SERVICE TAX to SERVICE TAX AUTHORITY	"

Paras Mehta (Service) (22 Points)
Replied 06 September 2009

Service Tax on transportation (goods transport agency – Transportation of Goods by Road) is to be paid by :

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b) any company established by or under the Companies Act, 1956 (1 of 1956);

(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; or

(g) any body corporate established, or a partnership firm registered, by or under any law, any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage;” ;

In the give example it is a Ltd Co. so the liability of Service Tax is on the co.

A Ltd has to pay Service Tax only on transportation charges in excess of Rs. 750/- on each consignment basis. Service tax is payable on 25% of the amount charged @ 10.30%.

If the transporter has already charged service tax in his bill the company need not pay any service tax on the same.

Paras Mehta

fahad (director) (23 Points)
Replied 11 October 2010

how the service tax work it is as same as excise or different .

if we recived the material and the transporter give separted bill with service tax it is input and if we sale the material and the trasporter give separted bill including service tax so we can take both the entry on cenvat or we have to take input (1000)- output(500) =500 we can take this to next month.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 12 October 2010

First if you are not one of the specified persons indicated in Paras's reply then the Transporter [ GTA} has to pay the ST.

If you are one of the specified entities then you have to register and pay the ST. In either case you would be eligible for cnevat credit. There is some doubt on credit availability on outward freight which is being disputed by revenue/ audit parties.

sweet acharya (STUDENT) (21 Points)
Replied 28 February 2011

Dear,

If the company have service tax no. and received serves provided by transporter.

where transporter has not charged any tax on service provided by him.

what would be the liability to pay tax by company.

Please reply for this.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 28 February 2011

Originally posted by : sweet acharya
	Dear, If the company have service tax no. and received serves provided by transporter. where transporter has not charged any tax on service provided by him. what would be the liability to pay tax by company. Please reply for this.

if the gross transport bill is excess of 750/- then dealer is liable to pay service tax as service receipent.

Jay Jain (Business ) (27 Points)
Replied 14 December 2011

Dear Sir

If Transporter Billty Amount including service tax and we paid full amount including service tax then we need to pay again service tax to department.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 December 2011

Originally posted by : Jay Jain
	Dear Sir If Transporter Billty Amount including service tax and we paid full amount including service tax then we need to pay again service tax to department.

as once you have paid service tax to transporter, the transporter will pay the same to department, no need to pay again on same transaction.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 December 2011

Originally posted by : Jay Jain
	Dear Sir If Transporter Billty Amount including service tax and we paid full amount including service tax then we need to pay again service tax to department.