Service tax on Internal Transport of Goods( from production point to Despatch section) is applicable?

Question

Service tax on Internal Transport of Goods( from production point to Despatch section) is applicable?

Answer 1

Yes and No.

Consult a practitioner on the logistic framework, on how to raise bills for the purpose or apportion / appropriate its cost. Excise people would love to include this in service tax net.

Answer 2

Service tax is not applicable since it is an internal transport, unless and otehrwise that body of internal transport which is providing service is a seperate entity, by virtue of which it is suppose to collect and pay. hence if its only an internal transfer and not carried out by a different entity of yours service tax is nto applicable. Since for it to apply the main  word "Service" should be there. Service for consideration.