Service tax on transport charges

ABC has correctly paid the service tax under GTA.services. But cenvat credit may be questioned by department as GTA is input service up to place of removal only. Your price is ex-factory that is why you claimed reimbuesrment. There is nothing wrong in raising debit note for reimbursement of freight and service tax  as it is ametter of agreement between parties. It is advisable not to show the tax element as service tax as it implies that you are collecting service tax from them.

1. ABC has paid correctly under GTA and ABC can take cenvat credit for the same.

2. ABC raised a debit note to its customer for Rs.4000 + service tax. Since the price was on ex-factory basis (assumed). However, ABC should only raise a debit not for Rs.4000 as it has already claimed the service tax part in cenvat credit. and moreover ABC should have a service tax registration to make service tax invoice/debit note.

3. ABC should have not taken cenvat credit and and claimed through debit note for Rs.4000+tax (consolidate amount without showing tax portion)

Is there any threshold limit or any limit where service tax becomes liable on transportation or it is compulsory to pay for any transportation service received?

XYZ is service provider they pick up material from there client and process it. They use there own vehicle for pickup of material. The invoice they raised on there customer on which transportation and toll charges are separately charged but no service tax collected on it but the material they processed the processing charges are collected from there customer for it and they collect service tax on it. I want to know that whether they to collect service tax on transportation and toll charges or not & weather there have raised any additional liability of service on transportation and toll collection Plz replay as early as possible

Pls tell me the entry to be made for such debit note.

Pls tell me the entry for such debit note & material purchase entry where transportation is charged.