14 November 2008
The basic question what is the terms of contract as to delivery and the terms with transporter to determine who is the service provider and who is the receiver.
14 November 2008
I put everything clearly in my question Whats ur problem in that
I have put
Supplier sends me goods and he pays the transporter i reimburse to him the transportation cost.
Supplier sends me goods and he pays the transporter i pay a fixed (agreed) sum to him the transportation cost.
What more u mean by terms i said im dealing with the supplier then i mean im recieving goods... if these terms are not present then only its a case for discussion or else i know whom to deduct tds with.
As per the service tax rules, notified category of the person is liable to pay the service tax. In case if the service receiver is not the notified category of the person, then transporter is liable to pay the duty.
If both the supplier and the purchaser are the notified category of the persons, then as per the contract who are liable to pay the tranport charges, those are lialbe to pay the service tax.
I think that is the reason why srinivasa raghavan had asked you the contract details.
In your first case, you are not directly paying to transporter. But you are reimbursing to the vendor. Therefore it is the duty of the vendor to pay the service tax, and not you.
CAclubindia
