Cenvat credit, Service Tax

[yateen vyas]

Sir,

We are using a small truck for carry our input/capital goods purchased in small quantity.Eg. My plant is situated away from Main city so we are using a small truck on rent for carry small quantity of goods from main city to my Plant. A contract is made for 3 trip in month and 1500 for per trip rent is fixed.

Now i want to it will attract any service tax under reverse charge service or any other service.

Posts / Replies

[YAGAY AND SUN]

Dear Yateen,

According to us No service tax would be applicable on this transaction.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

[CS SANJAY MALHOTRA]

Dear Yateen,

Refer to Service Tax Notification No. 25/2012 dated 20.06.2012 (Serial No. 21) which provides Exemption from Service Tax as below. Freight upto ₹ 1500/- as applicable in your case is within exemption limit and hence is exempted from Service Tax. If the same increases to ₹ 1501/- no exemption is available.

21. Services provided by a goods transport agency by way of transportation of -

1. fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;
2. goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or
3. goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;

[prathit maini]

DEAR YATEEN

ACCORDING TO US NO SERVICE TAX WOULD BE APPLICABLE BUT THERE IS A CASE LAW "(mad)-cce vs. Suibramania Siva co op sugar Mills Ltd. 2014 (11) TMI 925 - MADRAS HIGH COURT" PLEASE REFER TO THIS CASE LAW BECAUSE IT IS CONTRADICTING TO OUR INTERPRETATION FOR LIMIT OF RS 750/1500 APPLICABILITY .

BY PRATHIT MAINI

[SHREEPAD BHAT]

As per the Service Tax Notification No. 25/2012 dated 20.06.2012 (Serial No. 21)

[21. Services provided by a goods transport agency, by way of transport in a goods carriage of,-

(a) agricultural produce;

(b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

⁴²[(d) milk, salt and food grain including flours, pulses and rice; ]

²⁵[(e) chemical fertilizer, organic manure and oil cakes; ]

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipments;]

²⁶[(i) cotton, ginned or baled.]

Observing the above Notfn. it is related with essential services, but as far as manufacturing activity one should go with the limit with ₹ 750/- and pay ST accordingly