S.Tax on Own Vehicle

[Mathurthi RamKumar]

Dear All,

Greetings of the day.

How to treat S.tax calculation

A) if a company use a own vehicle for good transport from factory to customer godown. In some cases customer will pay the transport amount or company (Manufacture) will bear transport amount.

B) If company use vehicle for other purpose (i.e transport of raw material from supplier to factory) any liability is there for pay S.Tax?

Kindly give guidance for above points.

Regards

M.RamKumar

AI Summary

Service tax on freight: collecting freight is consideration and attracts tax unless transport is of own goods or excluded by the negative list.
Service tax is not payable where a company transports its own goods without charging freight, because no service for consideration is provided; collecting freight from customers constitutes consideration and prima facie attracts service tax. However, transportation of goods by road is typically excluded under the negative list unless rendered by a goods transport agency or courier, so charges recovered from customers by a non-GTA/non-courier ordinarily remain outside service tax.