TaxTMI 
TaxTMI 
Applicability of notification no. 34/2004, Our client is an excvisable unit. He sends goods in full Truck Load to his customer and pays Rs. 1400/- towards freight. The Transporter is not regd. under Service tax. whether our client is liable to pay service Tax on the Freight or the exemption is applicable in his case as the gross value of consignment is below Rs. 1500/-. Plz clarify?
Liability of service tax on freight
30 Apr 2008 
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Service tax exemption on freight applies where consignment value falls below threshold, excluding tax liability for consignor or consignee.
The exemption under Notification 34/2004 applies to freight for consignments where the gross amount charged per consignment does not exceed the statutory threshold; this exemption operates even when liability to pay tax is cast on the consignor or consignee, so freight paid for full-truck-load consignments below that threshold is not subject to service tax despite the transporter's non-registration. (AI Summary)
The exemption under Notification 34/2004 applies to freight for consignments where the gross amount charged per consignment does not exceed the statutory threshold; this exemption operates even when liability to pay tax is cast on the consignor or consignee, so freight paid for full-truck-load consignments below that threshold is not subject to service tax despite the transporter's non-registration. (AI Summary)