Service Tax on Local Transportation

Queries 952 views 2 replies

Sir,

Is service Tax payable on local transportation charges which are debited to Hamali & Cartage account.  If so, what is the limit on which it is exempt.  Rs.750/ Rs.1500

Aiyan H

Replies (2)

with a vehicle registration number in force,

exemption 750 when the carrige is hired for more than one consignment 

exemption 1500 when the carriged is booked by consigner for single consignment.

Further, there are CESTAT decisions holding that freight paid to individual lorry owners are not liable to tax as they are not GTAs. But department is still contesting this matter.


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