Service tax on transport on retail sales

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Hello,

We are in retail trading of iron and cement. We sold the materials to cosumers on delevery basis. We imposed Kalasi Loading and un loading Chages and transport charges on every sale bill.

As per the AP VAT rules we have to pay the VAT on all charges which are mentioned in sale invoices. For calculating VAT amount on invoice value, we transfer all the charges to sales head and we are paying VAT on total sales.

In our books of accounts there is no amount shown seperately under the heads of Transport or Loading and unloading charges as all the amounts are transferred to sales account as mentioned earlier.

Can you clarify the applicability of service tax on above charges.

Replies (1)

Person who pays freight to transporter is liable to service tax. Loading unloading collected may be taxable under cargo handling but exemption of Rs. 10L ia available.


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