Confusion regarding service tax

This query is : Resolved

CA. S.K. Upadhyay (Querist)
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19 January 2015 Dear Sir

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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.