20 October 2010
We manufacture pigments (color dyes). Last year we have paid central excise duty (on goods produced and cleared) less than 10 lac (by cash + Cenvat credit both)
We do not provide any type of service at all. We receive transport service from different transporter/s, transport agencies (for raw material receipt and dispatch to customer and upto depot)
Kindly guide me about : are we liable to pay service tax as transport service receiver If we are paying the related transport bills.
Some body told me that yes we have to pay service tax as service receiver (though we do not provide service of any type at all.
Some body told not necessary.
Till date we are not registered for service tax But we are registered for central excise from last two years and have started e filing of central excise ER-1 from last two months.
Kindly guide me service tax is liable on us (related to transport service and extra if any) or not
21 October 2010
Since you are a manufacturer , you are required to pay the ST on 25% of the freight paid to GTA [ other than to GTO- owners/ operators} from 1.1.2005. You would alsobe eligible for credit of the same in paymentof CED. Outward freight thereis some dispute as present.
CAclubindia
