Service tax on delivery charges

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ANUJ GUPTA

22 Points Posted on 30 June 2013

Dear Sir,

One of my client is an authorized dealer of Indian Oil Corp. It is selling oil to various outlets belonging to reliance at its various sites. Reliance is paying delivery charges @ Rs. 500/- per site per month bresides the oil charges. The client is using hired trucks for delivery of oil to reliance sites. Please specify the serive tax liability on delivery charges sol collected.

Thanks

Replies (2)

Prabhat Kumar

Advocate & Consultant

1820 Points Posted on 02 July 2013

you are providing delivery servie to your buyer against consideration and the same does not appear either in the negative list or in the exemption notification.so, you should pay the service tax on Rs. 500 collected as delivery charges.

Vikas

1245 Points Posted on 03 July 2013

Dear Anuj, Please note that such services may be considered as Goods Transport Agency services and the Service Tax liability would already have been discharged by Reliance @ 3.09% [25% x 12.36%], being a service recipient under Rule2(1)(d) of the Service Tax Rules, 1994. You may further note that the activity of hiring of vehicles for the purpose of transportation of goods by GTA is also exempted from Service Tax vide Notification No.25/2012-ST dated 20 June 2012.