Need expert advise in service tax

X  Ltd is in the business of selling & erecting towers for its telecome customers.This Co. Purchase towers from  A. Ltd which delivered the towers at the site as per customer's (telecome co.) choice. A. Ltd is charging Freight from X Ltd. including the Am. of Service tax on transport. 

X Ltd is charging its customer, Freight with certain amount of margin .

Will that margin is taxable under service tax as business support services or by any other means ?

Plz mention the relevant section/circular.      

Replies (5)
Is there any threshhold exemption on chargeability of service tax on renting of property for commercial purposes?
This chargaable to service tax as a freight charges

The threshold limit is Rs. 10 Lacs w.e.f.  April 1, 2008.

 

Dear Gaurav

The person who is paying th efreight o the transporter is liable to pay the serbvice tax. Hence the freight is part of value and it's seems that your paying te freight to the transporter hence definately the servie tax liability is your's under GTA. 

 

 

 

Dear Gaurav

The person who is paying th efreight o the transporter is liable to pay the serbvice tax. Hence the freight is part of value and it's seems that your paying te freight to the transporter hence definately the servie tax liability is your's under GTA. 

Ajay Garg

 

 

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