Service tax on transport by road

Prashant (Director) (47 Points)

28 May 2011  


We take help of transport services provided by various transporters for taking our goods from our premises to our customers.

Some transporters charge service tax and some dont.

Until recently, the service tax was calculated on 25% of transport charges. But now we find that the service tax is charged on full amount.

We need to know if there has been a change in the rates for service tax or the abatement clause has been withdrawn.

Please advise so that we can accordingly record transactions at our end.


Thanks and regards,