Service tax on goods transport by road

Sir,

As per reverse charge mechanism you are a person liable to pay service tax as per notification no 30/2012 ST.

But as per notification no 25/2012 ST, - Exemption is given to-

21. Services provided by a goods transport agency by way of transportation of -

(a)  fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;

(b)  goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or

(c)   goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;

in your case, as you are paying Rs. 400 per consignment, you are not liable to pay service tax.

sir

thanks for the prompt reply , but will our being a Factory , registered under the factory act make any confusion.

regards