Saroj Rout (CA FINAL) (120 Points)
24 September 2011Anyone please clarify the notification 34/2004 of service tax regarding tax exemption limit of a consignee paying freight to a Goods transport Agency.
Gautam Joshi
(Partner)
(361 Points)
Replied 24 September 2011
Hi Saroj,
Notification No. 34/2004 prescribes maximum exemption limits of freight amounts from Goods Transport Agency Service. These are called "value-based exemptions".
There are two limits -
1. Rs. 750/- for individual consignment
2. Rs. 1500/- for all consignment
Individual consignments are those consignments where all good transported in a goods carriage and just because word "all" here is prescribed it can not be bifurcated to get Rs. 750/- exemption for each consignments travelling in the goods carriage of the consignee.
Rs. 1,500/- limit will be applicable to small scale operators opertating with small or medium sized goods with small or medium sized goods carriages for short distances.
Warm Regards.
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