LEVY
OF SERVICE TAX ON ROAD TRANSPORTERS
Pramod Dayal Rungta, M. Com., LL.B., AICWA., FCA., DISA(ICA)
|
| Effective
date : |
01st january 2005 on booking
of goods for transportation |
| Rate
: |
10.20% (including. Education
cess) applicable only on the transport of goods by road |
1) 25% of the bill amount (exluding octroi, local taxes,
insurance )
2) No credit will be allowed for the service tax paid on telephone,
insurance, electricity, professional fess etc.
3) If credit is taken ( as stated above in para 2 ) than the 100%
value of the bill amount (exluding octroi, local taxes, insurance
) will be subjected to tax in place of 25%
Example : if you (transporter) charges to your party as below
: |
Tax @ 10.20% be calculated on 25% of rs.1100/- i e exluding octroi,
local taxes, insurance hence tax will be rs. 28/- and bill amount
will be rs1240/- + rs.28/- = rs1268/-
Exemption:
The taxable service provided by a goods transport agency to
a customer , in relation to :-
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