03 July 2013
one of my client is liable to pay service tax under GTA service, but in his sale he charge his customer for transportation charges also. will he is liable to pay tax on that also if yes plz specify??
03 July 2013
Yes In case of service tax under reverse charge mechanism the service receiver has to pay service tax under GTA
But that the amount collected from customer is not subject to service tax as he is not providing any service
However the client has to be cautioned as regards vat is concerned. as there are disputes with sales tax and central excise department depending on the state to include freight charges with the taxable turnover or transaction value
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