20 December 2012
We being a company avail the services of goods transport agency, so we are liable to pay service tax on it. But the goods tranpport agency has raised the bill of Rs. 70000 and has not mentioned the service tax rate and it has been mentioned on the invoice itself - service tax payable by conisgnor. Our company avails cenvat credit of inputs received. So at what rate we are suppose to pay service tax to the department @ 12.36% or after claiming abatement @ 75% on 12.36% ie effective rate - 3.09% ?
Also, do we need to ask the goods transport agency to provide us the revised invoice after charging service tax?
20 December 2012
Dear you have a option, if you will pay @3.09%, then u cannot avail its Input tax credit, if falls in the INPUT service def. for you, if you will pay @12.36%, then you can avail its cenvat. Hope your Query is resolved.
CAclubindia
