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

Service Tax Not Applicable on Seller's Freight Charges in Own Vehicle per Section 66D(p) of Finance Act 1994 A query was raised regarding the applicability of service tax on freight charges when the service provider is not a goods transport agency. The scenario involves a seller transporting goods in their own vehicle and charging the buyer separately for freight, which is itemized in the invoice. A response indicated that, according to Section 66D clause (p) of the Finance Act, 1994, transportation of goods by road, excluding services by a goods transportation agency or courier agency, falls under the negative list, and thus, service tax is not applicable. However, this interpretation is subject to specific facts and circumstances.