service tax on transporation and loading and unloading charges

[Girish Nair]

we are a international freight forwarder and a customs house agent, we providing a service to central government department

my doubt is

we are providing service like customs clearance, transportation service &loading and unloading charges and in a single invoice the maximum charges of transporation is RS.10000 and labour charges will be maximum rs.4500 currently we are charging a service tax on the service charges around ₹ 3500/- we are charging the service [email protected]% on service charge and not charging on other heads and all the invoices will have 3 items only and maximum 4-5 invoices per month.. is it other two heads like loading and unloading charges and transportation charges also come under the service taxable? if yes what is percentage of the service tax? if our billing service tax amount to this department is less than 10 lakh per year, is it applicable of service tax?

if service tax is not applicable for these heads please confirm the notification details

[CSSANJAY MALHOTRA]

Service Tax is applicable on Transportation & Labour Supply. Further Service tax exemption is not restricted party wise to ₹ 10 Lacs but applies to Turnover / Receipts from Total Business / Service provided.

Service Tax is to be paid @ 12.36% on 25% Freight Value (Sr No 7 of Notification No. 26/2012- ST dated 20.06.2012) in case of transportation of goods by Road under head "Transportation of Goods by Road". Service Tax is exempted provided the single consignment freight value is less than ₹ 1500/- or ₹ 750/- in case of multiple transshipments in single truck.

Loading & Unloading charges comes under the head " Business Auxiliary Services" as the same is service rendered on behalf of client. Service Tax is 12.36% on Total value.

Hope the above addresses your issue raised.

AI Summary

Taxability of transportation and loading services: transportation taxed on a fraction of freight, loading/unloading taxed on full value. Transportation of goods by road is taxable with tax computed at the standard rate on 25% of freight value, subject to consignment-level exemptions where freight falls below notified thresholds; loading and unloading services fall under Business Auxiliary Services and are taxable at the standard rate on their full value. Exemption thresholds apply to total business turnover/receipts rather than being restricted to a particular recipient.