Service tax on diffrence between freight received and paid

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2014 Dear Sir We are manufacturar of Porcelain Insulators and Supply to Government Electricity Board. There is difference between freight collected from buyers and paid to transporter. we are paying Service Tax on Freight paid to Transportar. In our unit Service Tax Audit Department has taken Objection and Pressurise us to pay Service TAX on Full Rate on Diffrence Amount what WE have received. They are consider under Business Support Service / Business Auxilary Service. WHAT WE SHOULD DO IN THIS MATTER PLEASE SUGGEST If any Judgement Suggest me Sir. Thanks & Regards Jayendra Patel Prime Insulators Pvt.Ltd.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 December 2014 You are liable to pay service tax on difference amount considering it as service provided on your part for the difference amount.

CA Parul Saxena

CA Parul Saxena (Expert)
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05 December 2014 This is very confusing thing even i am confused in this...if we would pay service tax on freight received from buyers then it will be a situation where we are paying service tax as service receiver (in case of transport) as well as service provider (in case of buyer)

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 December 2014 agreed with seetharam's view.....................

CA Parul Saxena

CA Parul Saxena (Expert)
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08 December 2014 In case of cartage received from customer service tax will be leviable as Business auxilliary services agreed with the fact. But please tell me whether limit of Rs.750 and Rs.1500 will be leviable in this case as is applicable in the case of transports.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 December 2014 If treated as transport charges the limit is applicable.