Freight paid by individual more then 1500

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2015 Dear experts,
an proprietorship firm has paid freight rs. 2760. and no other goods was loaded in the truck. and this proprietorship firm also not having ST no. plz let me know does this proprietor ship firm need to obtain ST no and pay 30% ST on 2760,

thnx & regard
Aman gupta

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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19 September 2015 Not required to pay service tax under reverse charge however if the service provider charges in his bill /invoice you need to pay to him.

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2015 Dear sir
but some tax experts, has said if the freight paid more then 1500, then Service receiver is liable to pay ST under RCM,

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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19 September 2015 If you fall any of this category then only you need to service tax under rcm,

(i) Factory registered under or governed by the Factories Act;
(ii) Company established by or under the Companies Act;
(iii) Corporation established by or under any law;
(iv) Society registered under Societies Registration Act or similar law;
(v) Co-operative society established by or under any law;
(vi) Dealer of excisable goods, registered under the Central Excise Law; or
(vii) Any body corporate established, or a partnership firm registered, by or under any
law.