Fuel - cost of freight, Service Tax

[nitesh chadha]

There is a fuel surcharge in percentage basis on every International Courier parcel or Document booked from India. Is this surcharge part of the total cost of freight so that service tax will be charged on total of freight cost + fuel surcharge or fuel surcharge is a misscellaneous expense and is exclusive from service tax charge ?

Posts / Replies

[Ravi Chopra]

The gross amount received from the client / customer is liable to service tax under section 67 (valuation). Fuel surcharge is the indirect cost upon the event should be included into the value of taxable services.