Fuel - cost of freight

[nitesh chadha]

There is a fuel surcharge in percentage basis on every International Courier parcel or Document booked from India. Is this surcharge part of the total cost of freight so that service tax will be charged on total of freight cost + fuel surcharge or fuel surcharge is a misscellaneous expense and is exclusive from service tax charge ?

[Ravi Chopra]

The gross amount received from the client / customer is liable to service tax under section 67 (valuation). Fuel surcharge is the indirect cost upon the event should be included into the value of taxable services.

AI Summary

Fuel Surcharge on International Couriers from India Must Be Included in Service Tax Under Section 67 A query was raised regarding whether a fuel surcharge on international courier parcels or documents from India should be included in the total freight cost for service tax purposes. The response clarified that under section 67, the gross amount received, including the fuel surcharge, is subject to service tax. The fuel surcharge, being an indirect cost, must be included in the value of taxable services.