TaxTMI 
TaxTMI 
Sir,
Is veh.detention charges chargeable to service tax or not.
Regards,
Mridul Sethi
Detention Charges
04 Oct 2012 
5 Replies 
10603 Views Asked by
Compensatory detention charges may be excluded from taxable value, subject to classification under service tax negative or exempt lists.
Whether detention charges attract service tax depends on their characterisation as compensation versus consideration for a taxable service. Contributors generally treat detention charges of a compensatory nature as not includible in taxable value and advise segregating such amounts on invoices; others caution that services are taxable unless excluded by the negative list and recommend consulting notifications or a tax consultant. (AI Summary)
Whether detention charges attract service tax depends on their characterisation as compensation versus consideration for a taxable service. Contributors generally treat detention charges of a compensatory nature as not includible in taxable value and advise segregating such amounts on invoices; others caution that services are taxable unless excluded by the negative list and recommend consulting notifications or a tax consultant. (AI Summary)