Leviability of service tax on Freight Charges for transportation of goods by Air

[Asked by Guest]

Is service Tax leviable on Freight Charges for transporation of goods by Air, since there has been no notification for the same as in the case of transport of goods by road.

[Surender Gupta]

Unlike in case of transport of goods by road, in case of transport of goods by air, only the service provider is liable to pay service tax.

[Madhukar N Hiregange]

Transportation of goods by air is covered under St from 10.9.2004. Section 65 (105)(zzn)defines the taxable activity.

AI Summary

Service tax on air freight: only the service provider is liable, as air transportation of goods is a taxable activity.
Levy of service tax applies to transportation of goods by air as a taxable activity, and the service provider alone is liable to account for and pay the tax under the statutory definition of taxable services.