Service Tax on goods transport agency - certain doubts clarified

Service tax on goods transport agency: primary burden on agency, payer liable only if within specified entity categories.

Service tax on goods transport agencies is primarily chargeable to the goods transport agency; however, the person making payment of freight becomes liable where the consignor or consignee belongs to specified categories such as registered factories, companies, corporations, societies, cooperative societies, registered dealers of excisable goods, or certain registered corporate or partnership entities. Traders outside those categories who pay freight are not liable. Exemptions include low-value consignments and carriage of fruits, vegetables, eggs and milk, and penalties will not be imposed for bona fide omissions for the time being.