Freight outward and inward & transportation charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2016 Dear Sirs,

1) We are a pvt ltd company and taking vehicles on hire basis from local transporters to delivery our materials to our customers. at the end of the month they are giving details to make payment to them. we are making payment to them after 15th of every month.

2) We also are having our own vehicle and we are delivering materials by our own vehicle also.

3) And we are taking vehicles from local transporters to bring raw materials to our factory and we are making payment to them.

In connection to the above please guide me the service tax effects and procedure and making payment of service tax.

Please do the needful.

Thanks & Regards,

Thirumalesh.P

Sandeep Dharar

Sandeep Dharar (Expert)
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26 October 2016 U have to pay service tax on 70% of the value of service. And u can't claim Cenvat Credit for that. U have to pay the whole amount in cash only.