Transportation expenses

This query is : Resolved

Khushbu (Querist)
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07 September 2009 When a company avils facility of transportation from a transport enterprise then liability to pay service tax lies with whom.
What if service tax not deducted & paid by the co. avialing facility.
Please explain in detail.

CP Ram

CP Ram (Expert)
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07 September 2009 Person liable to pay service tax in case of Transport of Goods Services:

Where the consignor or consignee of goods is - (a) any factory or (b) any company or (c) any statutory corporation or (d) any registered society or (e) any co-operative society or (f) any dealer registered under Central Excise or (g) any body corporate or a registered partnership firm, then, the person liable to pay service tax shall be any person who pays or is liable to pay freight either himself or through his agent for the transporation of goods by road in a goods carriage.

If none of the consignor or consignee falls in any of the aforesaid categories, the person liable to pay service tax will be goods transport agency itself.

Penalty for failure to pay service tax:

(a) Rs.200 per day of failure or
(b) 2% p.m. of service tax,
whichever is higher, starting with the first day after due date till the date of actual payment of outstanding amount of service tax, subject to maximum of tax not paid.