service tax on freight charges when service provider is not goods transport agency

[divyesh gondaliya]

when goods are sold by seller and their are dispatched to buyer at his premises in vehicle owned by the seller and the seller separately charges freight from buyer and also separately disclosed in his invoice  then service tax is payable by seller/buyer

 thanks 

[Sandeep Soni]

In our view, As per Negative services mentioned under Section 66D clause (p) of Finance Act, 1994 is as under.

(p) services by way of transportation of goods-

   (i) by road except the services of -

       (A) a goods transportation agency

       (B) a courier agency

So according to our view it will be under negative list & service tax will not be payable.

This is subject to fact & circumstances of each. This is only our view. We are not bound by this.

AI Summary

Negative list exclusion: seller-charged freight not subject to service tax if seller is not a goods transport agency Services by way of transportation of goods by road are excluded from taxable services under the statutory negative list except when provided by a goods transport agency or courier agency; consequently, where a seller using its own vehicle separately charges freight and does not qualify as a goods transport agency or courier agency, that freight falls within the negative list and is not subject to service tax, subject to the facts and circumstances of each case.