Service Tax On Goods Transporter Services( Freight Charges)

Last updated at Dec. 16, 2024 by

Name of Service

Service Provider

Service Receiver who deposits service tax

Goods transport agency’s services:

Transport Company

Factory (registered under or governed by the Factories Act, 1948.)

Society Cooperative Society Dealer Registered under Excise(First Stage dealer/Second Stage Dealer)

Body Corporate Partnership firm (whether registered or not)

(There is 70% abatement also)

 

Service Tax On Goods Transporter Services( Freight Charges) - Concept of RCM (Reverse Charge and Partial Reverse Charge)

  goods transporter services new image.png

 

When is Service Tax Exempt for Goods Transport Agency?

Following Items Exempt Without Limit

  1. Milk, salt, food grains including flours, pulses, rice. ( Updated budget 2015-effective from 1st April, 2015).
  2. Agricultural produce
  3. Good transport service for transport of export goods by road from place of removal to inland container depot, a container freight station, a port or airport, land customs station.
  4. Defense or military equipment
  5. Cotton, ginned, bailed ( budget 2014 changes.)
  6. Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap
  7. Chemical fertilizer and oli cakes.
  8. Newspaper or magazine registered with registrar of newspaper. 

 

Other Items

Service tax is exempt if

 

Freight Charges per truck is upto 1500

or

Freight Charges per Consignee is upto 750

 (If freight bill is upto 750,no service tax)

 

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.