Service tax on transport of coal to bio power plant

[jagadesh kumar bhojanapalli Kumar]

Dear Sir,

We are doing coal trading through e-auction(in India) from central government coal fields/mines  and supplying to Bio Power Plant (in India) where we would like to know the applicability of service tax on transportation of coal to power plants, India.

Could you provide us  respective notification if at all any exemption.  regards, Sr. Manager - Commercial

[Guest]

There is no exemption from charging service tax on transportation charges for transportation of coals. Service tax liability would arise on the person liable to pay freight to GTA.

[jagadesh kumar bhojanapalli Kumar]

Pl refer Circular No.104/07/2008-ST/6.8.2008 , 95/6/2007-ST dtd.11.6.2007 , the person transporting the goods issues a consignment note, it would be classified as "GTA Service" .  In our case transport firm is not issuing any consignment note.

AI Summary

Service tax on transportation: liability arises on the freight payer for coal deliveries to bio power plants. Service tax applies to transportation of coal to a bio power plant; liability to pay service tax is on the person liable to pay freight to the transporter. If the transporter issues a consignment note, the service is classifiable as GTA service and attracts service tax. Lack of a consignment note is a factual variation noted by the inquirer but does not establish an exemption.