TaxTMI 
TaxTMI 
TaxTMI 
We have started a new Partnership Firm in which we are purchasing the goods from outside the state and we have to pay the freight on it. Service Tax is not paid by the transporter. In Service Tax on the freight is to be paid by us. What is the mininum limit upto which service tax is not applicable if the freight is to be paid by us.
Minimum Limit on which service tax is applicable
Monika Mittal
New Partnership Firm Must Pay Service Tax on Freight Unless Consignment is Below Rs. 750; Registration Advised A discussion on a forum addresses the applicability of service tax on freight for a new partnership firm. The firm, as a service receiver, is responsible for paying service tax on freight since the transporter does not pay it. There is a debate about the exemption limits, with some asserting that the Rs. 10 Lacs exemption is only applicable to service providers, not receivers. It is clarified that service tax must be paid on the first transaction unless the consignment is below Rs. 750, in which case an exemption applies. The firm is advised to register for service tax and comply with the obligations. (AI Summary)