F No.V/DGST/88-GTA/01/2010/464 Dated:- 20-1-2011 Order-Instruction – Circulars – Service Tax – F No.V/DGST/88-GTA/01/2010/464 Directorate General of Service Tax 9th Floor, Piramal Chambers Jijibhai Lane, Lalbaug, Parel Mumbai-400012 Dated: January 20, 2011 Sub:- Inclusion of handling charges to Goods transport Agent in case of M/s. Food Corporation of India Reg. An instance of avoidance of payment of appropriate Service Tax amount has been reported by the Central Excise Commissionerate, Rohtak. Brief details in this regard are as follows. In respect of the transportation services provided by the contractors with regard to the transportation of the foodgrains stocks, M/s. Food Corporation of India (M/s. FCI)
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ing charges in the transport charges, wherever provided by the same contractor/agency, for determining the taxable value and accordingly discharged Service tax liability. As such, if loading/unloading charges are added into the transport charges, many bills may cross the exemption limit of Rs.750/-, on which no Service Tax has been paid by M/s. FCI. To summarise the above, M/s. FCI should have Included the handling charges to the transport charges, wherever provided by the same contractor/agency. They have evaded Service Tax by not including the value of handling charges to the transport charges and wrongly availed the slab exemption of Rs.750/- per consignment under Notification No. 34/2004-ST dated 03.12.2004. In this connection, at
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