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
21 Mar 2011 
6 Replies 
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Service receiver liability for freight services: recipient must register and pay service tax; per consignment exemption may apply.
Liability for service tax on freight under GTA rests on the service receiver: consignment-specific low-value exemptions apply for consignments below a defined threshold, but consignments above that threshold require the recipient to register and remit service tax on the whole freight. An aggregate-year exemption exempts taxable services up to ten lakh rupees from service tax, while registration becomes necessary once taxable services exceed the registration threshold. (AI Summary)
Liability for service tax on freight under GTA rests on the service receiver: consignment-specific low-value exemptions apply for consignments below a defined threshold, but consignments above that threshold require the recipient to register and remit service tax on the whole freight. An aggregate-year exemption exempts taxable services up to ten lakh rupees from service tax, while registration becomes necessary once taxable services exceed the registration threshold. (AI Summary)