Service tax on goods transport by road

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amit

operations

45 Points Posted on 10 September 2012

sir

we are a Proprietory firm engaged in maufactring of Exiseable Goods and are registered under Factory Act , we supply material to our coustomers located near by and the order issued to us in on the condition of FOR works of our coustomer , we are paying freight of Rs 400 per trip to our Tempo person who is an individual ,

what will be the servise tax liability , Who will bear the servise tax and at waht rate. please provide us details regarding the same.

thanks in advance.

amit

Replies (2)

Shridhar Shah

Chartered Accountant in Practice

172 Points Posted on 10 September 2012

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.