Payment to transporter

In case if LR is not given by transporters, then service tax is not applicable at all because this transportation service in such a case would be covered under negative list.

As per definition u/s 65B, if there is a consignment note (i.e LR) then it would come under regime of services given by Goods Transport Agency. Now, if there is no LR, then it is normal case of service which is covered under Negative List.

Hence Service Tax is Not applicable at all.

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As per N/N-25/2012, if the freight paid per vehicle is below Rs. 1500, then the same is exempted.

For all freight expenses, LR is compulsory not only for abetment but also, that the expenses should not getting dis allowed by IT, as there is no supporting.