Exemption under service tax

[Ganges Limited]

We have been engaging local transporters for carrying materials from our factory to port on paying a sum of Rs.2500/- for each trip.We are aware that the service tax on export freight is fully exempted from taxation. But this case we have been receiving only local transporters bill for accounting.Is it a sufficient proof for claiming exemption under service tax ? or any other proof is required ? Please clarify

[Mukesh Kumar]

By virtue of notification 18/2009 ST dated 7-7-2009, you shall be entitled to avail the exemption provided other conditions of the notifications are fulfilled. The consignment note may be issued for local transport but should be issued in the name of exporter. This document with other documents of export would be sufficient to claim the exemption. Please note that this exemption is not available where services are being provided by Individual to Individual.

AI Summary

Service tax exemption for export freight requires consignment note in exporter's name and supporting export documents to claim relief. The service tax exemption for export freight is available where documentary conditions of the notification are satisfied: the consignment note must be issued in the name of the exporter and, together with other export documents, suffices to claim the exemption; the exemption is not available for services supplied on an individual-to-individual basis.