I have little confusion regarding service tax so please clarify the same.
Case:- We charge in invoices freight as transportation charge of Rs 100000 but we pay to Transporter of Rs 55000.00 only. Confusion 1. Whether Service tax would be charge on Rs 100000 under Business Auxillairy Services or Not. Confusion 2. Whether Service tax would be charge on Rs 55000.00 under GTA or not. Confusion 3. If we pay Service Tax on both i.e. ST on Rs 100000 under Business Auxilliary Service and ST on Rs 55000 under GTA (Reverse Charge) then it would be double taxation. Whether it is right or not.
So please clarify the above points in details asap.
19 January 2015
1. Service tax payable on Rs 100000 under business auxiliary service. 2. Service tax payable on Rs 55000 under GTA after availing abatement. 3. The service tax paid on Rs 55000 can be claimed as cenvat credit on payment of service tax on Rs 100000.
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