"A" is a manufacturer of goods and supplies to "B" who is a customer through "C" - an agent. The Invoice raised directly by A on B. Howver, the freight is being paid by the C (Agent)- out of his commission, and he books the freight as expenses in his books of accounts .
"A"(consignor) & "B"(consignee) are not paying freight to the transporter. "C" who pays the freight is neither a consignor nor consignee ? In such a case, who is liable to pay Service TAx ?
29 May 2009
The said rule 2(1)(d)(v)of Service Tax Rules, 1994 is applicable only those who pay freight charges, as consignor or consignee. But in my situation the freight is being paid niether as consinor nor as consignee. The commission agent (Registered Partnership), who get sales commission, is paying freigh out of his commission as explained above.
IN SUCH CIRCUMTANCES, IS THERE ANY LIABILITY OF SERVICE TAX ARISES ?
14 February 2010
The said rule 2(1)(d)(v)of Service Tax Rules, 1994 is applicable only those who pay freight charges, as consignor or consignee. But in my situation the freight is being paid niether as consinor nor as consignee. The commission agent (Registered Partnership), who get sales commission, is paying freigh out of his commission as explained above.
IN SUCH CIRCUMTANCES, IS THERE ANY LIABILITY OF SERVICE TAX ARISES ?
CAclubindia
