exemption on freight

Originally posted by : verma
	Dear friends Generally Service tax is leviable on transportaon of goods if the consignment value exceeds Rs.800 Is there any exemption on transportation of spare parts? Ms.ABC ltd from chennai transports spare parts to its branch located at Kerala.What is the tax implication? Kindly clarify

Notification No. 34/2004 - Service Tax

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to a customer, in relation to transport of goods by road in a goods carriage, from the whole of service tax leviable thereon under section 66 of the said Act, where,-

(i)	the gross amount charged on consignments transported in a goods carriage does not exceed rupees one thousand five hundred; or
(ii)	the gross amount charged on an individual consignment transported in a goods carriage does not exceed rupees seven hundred fifty
	Explanation .- For the purposes of this notification, “an individual consignment” means all goods transported by a goods transport agency by road in a goods carriage for a consignee.