LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

HELP ME ABOUT SERVICE TAX

MUNAF PATEL (TAX CONSULTANT) (31 Points)

14 March 2009

Hi !

I want to know about taxability of Service Tax on Goods Transport Agency. Mr. X (a transport agent ) made a consignment note of Rs. 20000/- . He has to pay Service Tax on 25% of the amount. I want to know whether Agent get the exempt limit of Rs. 8 lacs on total booking amount or 25% of the booking amount. I mean he will get Rs. 8 lacs of booking amount or 32 lacs of booking amount.

Kindly reply .

Thanks.

Reply
Follow
Share

3 Replies

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 15 March 2009

Exemption is for Rs. 10 lakhs of "value of taxable services". Only 25% of the freight value is taxable. Thus the exmeption is available upto 40 lakhs of freight value.

ashok khandelwal (service) (32 Points)
Replied 18 March 2009

Under same management there are 20 companies out of which 5 company have turover less Rs.10.00 lac ( As per Serivce tax) whether this companies come under exemption catogry or not.

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 18 March 2009

The question is whether the different companies are "different persons" in the eye of law. The mere fact that they are under same management is irrelevant. You need to get the issue examined professionally by some person, who will examine the issue in totality of facts and give you complete answer to the issue.