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 Dispute: Company Faces Tax on Satellite Communication Charges During Mini Bulk Carrier Hire Per Rule Compliance. A company using its own Mini Bulk Carrier (MBC) for transporting raw materials via sea occasionally hires these carriers to third parties. They are registered under the 'Supply of Tangible Goods' category and pay service tax accordingly. However, they also charge an additional Rs. 100 per day for satellite communication during the hire period, on which they do not currently pay service tax. Respondents advised that unless exempted under specific notifications, service tax should also be applied to satellite communication charges, as these are integral to the service provided.