Business Support Service

[Sanjeev Chauhan]

Respected All,

If a manufacturer of excisable goods is arranging transportation for their customers and collecting such freight charges on his Invoice (such freight charges are not includible in Assassable value of excisable goods) , than such arrangement of transportation for customers would be liable to service Tax under Business sport service.

Regards,

Sanjeev.

AI Summary

Service tax on transportation: liability depends on consignment note presence and inclusion of freight in assessable value.
The key issue is whether arranging transportation and collecting freight by a manufacturer is taxable: one position treats it as GTA Service attracting service tax; another limits GTA to cases with a consignment note, excluding transactions without such a note. If the manufacturer provides transport, freight may be includible in the assessable value as additional consideration. A buyer's written undertaking to bear the service tax may relieve the manufacturer from collecting it.