Question ID : 1066

service tax applicabilitiy on transportation charges paid for earth filling to tractor owners

My client is a civil works contractor. Transproation charges are paid by him to tractor owners for brgg the earth to the site. He books these charges as earth fillg charges sce he is not givg any separate amount for the earth.
The charges paid per round are Rs. 600. Sgle tractor owner makes 3-5 round per day. i.e. on a sgle day total payment made to one tractor owner comes to 1800-3000.

My query is
1. whether payment made to these tractor owners is liable to service tax.
2. for the purpose of exemption under notification 34,2004 dividual consignment will be consignment one round or consignment durg the day (keepg view contract is given for the all the rounds not for the sgle round).
3. Whether he is correct bookg these total amount as earth filg exp.
'

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