Exemption under service tax, Service Tax

[Manikandan R Ramasamy K]

We have been engaging local transporters for carrying materials from our factory to port on paying a sum of Rs.2500/- for each trip.We are aware that the service tax on export freight is fully exempted from taxation. But this case we have been receiving only local transporters bill for accounting.Is it a sufficient proof for claiming exemption under service tax ? or any other proof is required ? Please clarify

Posts / Replies

[Mukesh Kumar]

By virtue of notification 18/2009 ST dated 7-7-2009, you shall be entitled to avail the exemption provided other conditions of the notifications are fulfilled. The consignment note may be issued for local transport but should be issued in the name of exporter. This document with other documents of export would be sufficient to claim the exemption. Please note that this exemption is not available where services are being provided by Individual to Individual.