I am working with a transport company we render service of transportation of material through Air Cargo, one of our client who is engaged in automobile parts manufacturing has given us the contract rates inclusive of service tax and wants us that we do not show service tax in our bills separately as they are saying that it creates some accounting problem with their system.
Actual
Freight 5000 ST @ 10.3% 515 Total 5515
Practice Followed (how we prepare bill)
Freight 5515 ST 0 Total 5515
Although we are depositing the service tax of Rs 515 with the authorities but according to Rule 4A the bill should mention the details of Service tax charged.
So is it a default on our part? If yes what are the implications.
CAclubindia
