Service tax on railway freight

Dear Shyama Prasad Basu Ji

IF a person giving you a bill of Railway Transporter service and does not charge service tax on it then you (SERVICE RECEIVER ) are liable to pay service tax on whole bill amount.  Service Tax liability will be calculated as under:-

Suppose bill amount if 16000 without service tax then you have to pay 10.3% service tax on 25% of whole bill amount i.e.  16000 x 25/100 = 4000   Rs 4000 is taxable value for service tax
     4000 x 10.3/100  = 412/- 

Your SErvice tax liability will be Rs 412/-

I thing this will help you.

SACHIN

Accounts Executive

Dear Mr Sachin,

Thanks for your reply. Actually 25% of transport service is liable to pay service tax @ 10.3% applicable to Freight by road.

My question is this that  25% of service on transportation is applicable to all modes of transport?

Regards

Basu

Mr Basu

Please visit this link

https://www.servicetaxonline.com/news.php?newsid=95