14 December 2012
A firm ABC is given job contract for operation of petrol pump by a oil company. ABC purchased material from that oil co. at market selling rate (means selling rate to customer) to sale in market. It gives monthly sold stock details to oil co. to get his profit margin in form of remuneration. The co. was reiumbursing the same after deducting TDS. My question is that will service tax is attracted on this transaction?
The purchase bill from oil company are in the name of firm. the firm purchased the stock say @75 rs per litre and sold it on 75rs per liter. every other regular dealer is also getting the same differnce as profit as we were the only diff. is that they get their margin on sale and we have to get reiumburse from the oil company.
ssi exemption benefit is avaialable to the firm in thii case?
14 December 2012
In your case, the title in the goods never passes on to such agent to come within the ambit of trading of goods and it is termed as provision of service.These are auxiliary for trading of goods and service tax should be charged on the bill
CAclubindia
