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Service tax on transportation of purchase goods

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sanket

59 Points Posted on 28 August 2012

In case of transportation of Goods by Road, in some cases service tax is paid by consignee/consignor who is liable to pay freight to GTA.

But when this service is used by exporter for export of goods than exporter is not is not liable to pay service tax because in that case these service is exempt.

But my question is...........

When this service is used for purchase of goods which is export outside india......

than is it treated as service used for export of goods and whether these service is exempt or not....????? If exempt than Why and under which section or noyification....?????

And whether sale against H-form is also treated as deemed export for claiming above exemption from service tax.....????

Replies (1)

U S Sharma

glidor@gmail.com

21670 Points Posted on 28 August 2012

1st of all, be clear that nothing is exempt, GTA service used in in movement of export cargo upto customs station is subject to rebate claim of service tax,

for other incidents, viz the procurement of goods or inputs for export purpose, the same is cenvatable, subject to conditions fulfilled under CCR2004, hence no loss at this point.

sale against form H is not the export of the manufacturer, but its export conducted by merchant exporter, hence manufacturer is not eligible for any benefit, but to clear the goods under CT-1 / form H, without payment of duty /vat/cst. balance service tax provisions are not exempted, however if the merchant exporter has paid service tax on GTA they have option to claim the rebate of same under form A

read the notification in this regard

https://www.servicetax.gov.in/notifications/notfns-2012/st41-2012.htm