GTA Service Tax on Hamali charges

[Mathurthi RamKumar]

Dear All,

Greetings of the day... We are paying S.Tax on GTA every month and taking cenvat credit. I want to now weather hamali chrges are also laible to pay service tax above 750/-? (we are showing hamali chargs saparete amount in the head feright on stores material)

Thanks in Advance

M.RamKumar

[YAGAY andSUN]

Dear Mathurthi Ramkumar,

Such charges are required to be included in the taxable value for calculating the Service Tax required to be paid under Reverse Charge Mechanism.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Yes sir, gross amount is required to be charged for payment of service tax.

However, if such charges are shown and incurred separately, then it should be treated as loading/ unloading charges and inclusive in the assessable value of the finished goods.

AI Summary

Service Tax Applies to Hamali Charges Over 750 Under Reverse Charge; Include in Finished Goods Value if Listed Separately A query was raised regarding the applicability of service tax on hamali charges exceeding 750, which are listed separately under freight for store materials. The first response indicated that such charges should be included in the taxable value for service tax calculation under the Reverse Charge Mechanism. The second response confirmed that the gross amount should be charged for service tax. However, if these charges are shown and incurred separately, they should be treated as loading/unloading charges and included in the assessable value of the finished goods.