Service Tax Applicability

Unbranded services exempted upto Rs 10 Lakhs under Not.6/2005 provided previous years taxable service not exceeded Rs. 10 Lakhs.

As per my knowledge Service tax is exempt( not need to charge) if Transport bill per Trip is not more than Rs. 1500/-. But if a Transporter gives a combine bill for all trips (single Trip amount does not exceed Rs 1500/-) at the month end whose total bill amount of all trips is more than 1500/-. In that case shall we are liable to pay Service Tax on Goods Transport. Pl suggest.

Pravin Thorat

Audit Officer

Pl Reply to pravingthorat @ rediffmail.com

10 lakhs per year

Pandal and Shamiana Service has been subject to service tax in the period 01.08.97 to 01.06.98. Then after that, it was again brought to service tax from 10.09.04 .

If the value of transportation is included in the invoice value and you charge a markup or profit on the same, then it is subject to service tax.

However, if you are claiming reimbursement of your transport expenses without charging markup and all conditions specified in Rule 5(2) of Valuation Rules are being satisfied cumulatively, then you can exclude the value of transportation charges from the gross taxable value subject to service tax

Hi Poornima

Thanks a ton for giving me such nice information.