Transportation of goods by road

Dear Sir,

We are newly formed company (QV Services) registered under service tax. We give transportation of goods service by road using small commercial vehicle like TATA ACE, Bolero Pick up, Maruti ECO.
We have started business January 2016, we will raise first invoice on 1st March 2016 on given service value of Rs. 160000/-.
We will raise at least one invoice with this amount every month. So We will cross 10 lacs turn over by year end. 

I want to know, can we collect service tax on this service given to my client. My client is a logistics company without having small commercial vehicle. 

What would be break up of tax should we collect. 

please Reply.

Regards,
Mukul
Asked 10 months ago in Service Tax from New Delhi, Delhi
Dear Mukul,

Service Tax is charged @ 14% plus Swatch Bharat Cess amounting 0.5%.

So total amount of Tax you need to charge is 14.5%.

Hope this clarifies your query.

Please feel free for any further clarifications.

Thanking You.

Regards,
CA Rohit R Sharma
BCOM, CA, LLB - GEN, CERT. FAFP, CERT FAFD.
Rohit R Sharma
CA, Mumbai
706 Answers
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