20 April 2012
CLIENT IS AUTHORISED TRANSPORTER FOR JAYPEE CEMENTS LTD, THEY ARE REQUIRED TO PAY UNLOADING CHARGES TO INDIVIDUAL TRUCK OWNER ON BEHALF OF THE COMPANY(JAYPEE CEMENT LTD) AND AFTERWARDS THEY CLAIM THE SAME FROM THE COMPANY. IN RETURN, COMPANY OFFICIALS ARE DEMANDIND SERVICE TAX REGISTRAION NO, CITING THAT THE PAYMENT OF UNLOADING CHARGES ON BEHALF OF THE COMPANY, SHOULD BE CONSIDERED AS TAXABLE SERVICE. I, ON BEHALF OF THE CLIENT , REQUESTED THE COMPANY, THAT THE IT IS ONLY REIMBURSEMENT OF EXPENSES. THERE IS NO REQUIREMENT TO OBTAIN SERVICE TAX REGISTRATION NUMBER. AM I RIGHT?