applicability of service tax.

[vinay wakde]

We have our own Mini Bulk Carrier (MBC) to bring our raw materials through sea route. Sometimes we have entered into contract for hiring the MBCs to  third party. We have registered for service catagory 'Supply of Tangible Goods'  and accordingly paying service tax.  However, we are also recovering additional amount Rs. 100/- per day  towards Satellite communication charges to the extent of number of days hire,  for which we are not paying any service tax.

Kindly guide us whether the service tax also payable on amount recovered towards satellite communication charges?

With regards,

VINAY

[YAGAY andSUN]

If the service provided by you are not covered under Mega Exemption Notification or Negative list then you are liable to pay the service tax on such services.

[sarjerao ghadge]

Supply of tangible goods service ,can't be performed without satellite communication charges in your case ;so service tax will form part of satellite charges.l

AI Summary

Service tax on recovered satellite communication charges forms part of taxable value and attracts service tax. Satellite communication charges recovered from hirers of a Mini Bulk Carrier are includible in the taxable value of the registered Supply of Tangible Goods service and attract service tax unless the service is covered by an exemption notification or falls within the negative list.