regarding Service tax in Transportation charge

This query is : Resolved

dileep agrawal (Querist)
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01 February 2010 SIR,
WE HAVE PRIVATE LIMITED COMPANY AND REGISTER IN EXCISE AS A DEALER EXCISE REGISTER WE HAVE PASS THE EXCISE TO OUR CUSTOMER BY FIRST STAGE DEALER.
NOW WE HAVE FACING SOME PROBLEM THAT EXCISE DEPARMENT ASK US TO TAKE REGISTRATION OF SERVICE TAX AND DEPOSIT SERVICE TAX OF TRANSPORTATION PAID BY US TO TRANSPORTER.
WE HAVE TRY TO TAKE RECEIPT FROM TRANSPORTER AFTER CHARGE SERVICE TAX BY TRANSPOTER.AND THEY SHOW IN THEIR rECEIPT ALSO THAT THEY HAVE COLLECT THE SERVICE TAX FROM US.

SO PLEASE ADVISE ME STILL WE REQUIRE TO TAKE REGISTRATION OF SERVICE TAX.

Sanjeev Kumar

Sanjeev Kumar (Expert)
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01 February 2010 if, transporter registered with service tax department and charging and paying service tax on freight charged from customer like you then service receiver is not liable to pay service tax under reverse charge method.

dileep agrawal

dileep agrawal (Querist)
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03 February 2010 please answer the last line that still we require any service tax registration or not?

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CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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03 February 2010 In my opinion, you have to get registration because under the service tax provision , it is the service receiopent who has to deposit service tax on freight, transport charges paid by you. In my opinion, you should stop paying service tax to the transporters and get registration.

CA Ashutosh Kumar Mishra

CA Ashutosh Kumar Mishra (Expert)
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03 February 2010 no, in that case receiver of service is liable to pay tax. and if any party is company or registred than receiver is liable and U are required to pay ST and U required Registration.