How to caluclate service tax for local freight

If we are paying freight to an local transport like Tempo or some small vehicles not more than Rs.2000/- a day for local distribution or some shifting of materials to various goodowns. Those peoples will not issue any consignment note know. For a day it is Rs.2,000/-. If we pay more than 40,000 to 50,000 in a month for different peoples at some small amounts.

we are liable to pay service tax for that also. If it is yes, please guide me to pay service tax for this.

Replies (1)

No, you are not liable to pay service tax on such payments. As per exemption notification no. 25/2012, the transporting of small consignments where freight is upto Rs. 750/1500 per vehicle is exempted. There is no daily or monthly limit as such. So for example, if in a day you pay freight of say Rs. 1500 to 10 vehicle aggregating to Rs. 15000, that is fully exempted.

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