Service Tax Liability
This query is : Resolved
16 January 2010
We are a manufacturing company wherein we receive transportation services of more than Rs. 6.00 crore.
There are two queries
1. What will be the taxable point? The point when the transportation aganecy raises the bill or the time whne we make the paymet.
2. We give some advance to the lorry driver and the balance amount is paid by the customer on our behalf which is further adjusted from our payment. Now the customer is deducting service tax on the balance amount paid and adjusts from our account. Is the customer right while doing this, if yes, then how should we account for it?
Please advice
There are two queries
1. What will be the taxable point? The point when the transportation aganecy raises the bill or the time whne we make the paymet.
2. We give some advance to the lorry driver and the balance amount is paid by the customer on our behalf which is further adjusted from our payment. Now the customer is deducting service tax on the balance amount paid and adjusts from our account. Is the customer right while doing this, if yes, then how should we account for it?
Please advice
18 January 2010
The taxable event is the payment by you to the GTA. In case of indirect payment ( cusotmer) then the debit/ deduction notice date) The payment of the GTA ST on 25% is to be made by the 5th of the next month.
The ST on GTA is payable by the person responsible for payment of the freight. In your case since you are responsible only you should be paying the ST. You may provide a declaration to your cusotmer that since you are liable tp ay the ST you are paying on the gross amount. The amount paid by him is only as an agent of your wrt that transaction and therefore there is no liability on him.
The ST on GTA is payable by the person responsible for payment of the freight. In your case since you are responsible only you should be paying the ST. You may provide a declaration to your cusotmer that since you are liable tp ay the ST you are paying on the gross amount. The amount paid by him is only as an agent of your wrt that transaction and therefore there is no liability on him.
18 January 2010
Thank you sir,
One more thing, can I claim credit from the tax on 25% of the taxable amount
One more thing, can I claim credit from the tax on 25% of the taxable amount
18 January 2010
No in case of GTA cenvat credit can not avail
18 January 2010
No in case of GTA cenvat credit can not avail
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