Service tax is to be paid on value which is equal to 75 % of Gross Amount Charged for transport of goods through inland water or National waterway. Same for coastal goods.

There is abatement of  25% on Gross amount charged for transportation  in case of coastal goods , inland water and national waterways goods. It means that service tax liability for such goods is against 75% of gross amount charged. 


Notification is reproduced for easy reference and more clarity:



Notification    No. 16/2011 – Service Tax New Delhi, the 1st March, 2011


G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to  do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 1/2006-Service Tax, 
dated the 1st March, 2006, published in the Gazette of India, vide Number G.S.R.115(E), dated the 1st March, 2006, namely:-
2. In the said notification, in the Table, after S.No.11 and the entries relating thereto, the 
following S.No. and the entries shall be inserted, namely:-
                                                                                  TABLE
(1)            (2)        (3)                  (4)                                                (5)
“12.      (zzzzl)        Services provided or to be provided, to any person, by any other person, in relation to transport of
i) Coastal goods;
ii) Goods through national waterway; or
iii) Goods through inland water.
-                                                                                                      75”
Note.-    The principal rules were notified vide notification no. 1/2006-Service Tax, dated the 1st March, 2006, published in the Gazette of India, Extraordinary vide Number G.S.R. 115(E), dated the 1st March, 2006 and last amended vide notification No.40/2010-Service Tax, dated the 28th June, 2010, published on the Gazette of India vide Number G.S.R.561 (E), dated the 28 th June, 2010.