09 January 2013
Respected Experts, 1.A company which is utilising transport agency services to deliver its raw materials to its factory and to deliver finished goods it produced from the factory to the customer premises. In this case should the company only pay the service tax component on behalf of the transport agency? Is it so, please give me the reply in detail. (sections or notification number be part of your answer.
09 January 2013
As the service receiver is a company., the company has to pay the service tax on the freight which it pays to Goods transport agency under reverse charge mechanism