Good morning everybody.
Currently I am a part of Internal Audit team of a Shipping Proepritorship Firm in our city.
Yesterday while verifying Tug and Barge Income bills I came across 2 bills raised to same party,
Descripttion written on that were,
(1) Water Transport of DAP (its a type of Fertilizer) from outer Anchorage to Zero Panel by Barges. Rate- Rs. 237 PMT
(2) Lightereage of DAP in bulk by Barges on Average. Rate - Rs. 59 pmt
In both above bills, services tax was not charged by the client and reason printed on BOTH said bills was,
"Service Tax exempted vide Notification No. 25/2012-Service Tax Entry No. 20 Dated 20th June, 2012"
I refered the above notification's point No. 20 which was as follows,
"Services by way of transportation by rail or a vessel from one place in India to another of the following goods"
Point No. (j) Chemical fertilizer and Oil cakes
Now, after searching a lot of hours yesterday I couldn't find the solutions of the following,
(1) Is the lighterage service and water transportation is same for Service Tax purpose, as the client has treated these both as same???
In short, lighterage services is liable for service tax or not?
Kindly, answer with relevant notifications, sections or case laws if there are.
Thanks in advance.
Regards,
Abhimanyu Bind
CAclubindia
