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

AI Summary

Eligibility for Service Tax Exemption on Local Transport Services: Consignment Note Required as Proof per Notification 18/2009 ST. A query was raised regarding the eligibility for service tax exemption on local transport services used to carry materials from a factory to a port, with a payment of Rs. 2500 per trip. The concern was whether a local transporter's bill suffices as proof for claiming the exemption. The response clarified that under notification 18/2009 ST dated 7-7-2009, the exemption is applicable if other conditions are met. A consignment note issued in the name of the exporter, along with other export documents, would be adequate proof. The exemption does not apply to services provided by individuals to individuals.