Difference between freight collected and paid to transporata

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2014 Dear Sir

We are manufacturar of Porcelain Insulators and Supply to Government Electricity Board.

There is difference between freight collected from buyers and paid to transporter. we are paying Service Tax on Freight paid to Transportar. In This Case what we should do.

what we are Doing is correct or not.

please suggest me we should do any...

Thanks & Regards

Jayendra Patel

Further what we should do about Diff. Amount we are geting. we should do any thing on diff.amount or not. Suggest me

thanks & regards

Jayendra Ptael

Dear Sir

In our unit Service Tax Audit Department has taken Objection and Pressurise us to pay Service TAx on Full Rate on Diffrence Amount what ever you have received. They are consider under Business Support Service / Business Auxilary Service. If any Judgement Suggest me Sir.

Thanks & Regards

Jayendra Patel
Prime Insulators Pvt.Ltd.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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27 November 2014 Yes Practice adopted by your organization is correct.

Service Tax Required to paid on Actual Freight amount not on amount charged from customer.

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2014 Dear Sir

What about Diff. Amount we are Getting.
we should do anything on diff.Amount or Not.

Suggest me

Thanks & Regards

Jayendra Patel

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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29 November 2014 Its is commercial receipt on which Income Tax required to be paid.

No Service Tax required to be pay on Differential Amount

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2014 Dear Sir

In our unit Service Tax Audit Department has taken Objection and Pressurise us to pay Service TAx on Full Rate on Diffrence Amount what ever you have received. They are consider under Business Support Service / Business Auxilary Service. If any Judgement Suggest me Sir.

Thanks & Regards

Jayendra Patel
Prime Insulators Pvt.Ltd.

Querist : Anonymous

Querist : Anonymous (Querist)

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2014 SIR WE ARE WAITING FOR YOUR REPLY

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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01 December 2014 As per definition given for Taxable service for Goods Transport Agency under section 65(105)(zzp) of Finance Act 1994, means
“Taxable Service” means any service provided or to be provided to any person, by a goods transport agency, in relation to transport of goods by road in a goods carriage.

Therefore, the difference between Freight charges received from customer and paid to Transporter would be "TRADING RECEIPT" only. No Service Tax required to paid in case Trading Receipt as it comes under the definition of Deemed sales under article 366(29A) of Constitution of India.

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