10 February 2010
A Pvt.Ltd.Co. Is doing trading activity of Chemicals. Company Purchases liquid chemicals from the importer of chemicals by Bond Transfer. This chemical is stored in their storage tank of the tank owner. Tank owner will charge storage charges if material is not lifted within validity period. For storage charges tank owner raise a debit note and charge service tax in his debit note to & Importer incurred incidental charges for purchase of material. This charges he reimbursed from the seller by way of debit note and also charge service tax in his debit note. Material which is purchased by the company is sold to the customer. If customer doesn’t lift material within 1 month, company also charge storage charges by way of debit note and charge service tax.
My Query is Can company get a credit of service tax charge by the tank owner and credit of service tax charge by the importer on incidental charges? How can company should discharge its service tax liability?