26 March 2009
I wish to know about s.tax liablity, we are consignment agent of one south India base company,they sent goods to us for further sale,they raise a consignment transfer note/invoce-in which they show basic rate+ex.duty+plus commision amount+insurance+transportation= bill amount. After this we produce sale invoce,than send a salepatti,shows detail of sales. They had given instruction to us to diduct the amount of commision,as well as amount of freight,which we have to sent directly to transport company,with diduction of TDS. My query is is our liablity to pay service tax on transport +commision amount? commision amount for whole year is arround 5-00lacs. where fright amount is arround rs.10-12 lacs. As existing consultant says when company show-add fright in consignment note,we not need topay any S.tax,as our commision is under limit of S.tas examption. Hope you will offer your valued opinion.
28 March 2009
Service tax on freight is to be paid by one of you, as consignor or consignee. If both falls in the seven crieterion, the person paying freight shall be paying service tax also. So you have to pay service tax. As your commission amount is less than 10 lakhs, you are not required to pay service tax. The billing done by the company is faulty- they need not show commission/freight/insurance in the bill as it is not required. One fine day excise department will raise a valuation issue. As freight is paid by you, and reimbursed by the company, your commission charges shall include freight also.
11 June 2009
Dear Mr. Rajesh Kumar, Thanks for information,now i request to give sum better ideia how to calculate our liablity of s.tax? see, as per your views and suggetion from others also, we calculated s.tax at current rate on 25%amount of total transport cost,which arrived say3.5 lacs,so liablity will be 3.5*10.3%= 36050.00, now we had paid s.tax through Phone bills,payment made to c&f agent,shipping company against imports means input and for verious transection for L/c payment's s .tax to bankers,can we claim and deduct from our liablity? Hope you will clerify the same.
CAclubindia
