Chargiability of service tax

[HITENDRA DAVE]

transporter charged service tax on his bilty that in position we paid the service tax amount to the transporter and thereafter we can availed cenvat credit m i right ,same times transporter charged S. T. and same times not charged bill is above 750 why?

[Surender Gupta]

as per notification no. 34/2004 - ST, GTA services are exempt form service tax where the freight charges are not exceeding Rs. 750/-. Further, you can avail the cenvat credit of service tax charged by the transporter if the same is qualifying the meaning of input service and outward freight is upto the place of removal.

AI Summary

Service Tax Exemption for GTA Services on Freight Charges Under Rs. 750; Cenvat Credit Available for Input Service A query was raised regarding the chargeability of service tax by a transporter, specifically when service tax is charged on some bills but not others, with a threshold of Rs. 750. The response clarified that according to notification no. 34/2004-ST, Goods Transport Agency (GTA) services are exempt from service tax if freight charges do not exceed Rs. 750. Additionally, cenvat credit can be availed on service tax charged by the transporter if it qualifies as an input service and the outward freight is up to the place of removal.