1) WE ARE INTO TRADING & HAVE SERVICE TAX REGN. UNDER GTA CATEGORY. AS OF NOW WE PAY FOR SERVICE TAX (AFTER ABATEMENT OF 75%)@ 12.36% ON TRANSPORT CHARGES OF PURCHASED BY US.IS THIS CORRECT ?
2) IN FEW OF THE CASES WE PAY FOR FREIGHT CHARGES ON BEHALF OF OUR CUSTOMERS AND CHARGE SAME AMT. IN THEIR TAX INVOICE (AFTER SALES TAX) AS FREIGHT CHARGES PAID RS.xxxxx. THIS AMT. INCLUDES SERVICE TAX PAID BY US TO TRANSPORTER. IS THIS A CORRECT WAY OF PRESENTATION ? OR WE HAVE TO BIFURCATE THESE CHARGES AS FREIGHT CHARGES Rs.XXXXX + SERVICE TAX Rs.XXX WHILE MAKING TAX INVOICE. i.e. VALUE OF COMMODITY + SALES TAX + FREIGHT CHARGES + SERVICE TAX.
BASICALLY WE ARE JUST PAYING FREIGHT CHARGES ON BEHALF OF PARTY. THESE PAYMENTS ARE ALL BY CHEQUE & THE FREIGHT WE PAY IS BOOKED IN OUR RECORDS UNDER EXPENSES.
IN MOST OF CASES WE PAY FREIGHT ON BEHALF OF PARTY AND CHARGE IN THERE TAX INVOICE AFTER SALES TAX.
ALSO PLEASE ADVISE IF SERVICE TAX IS PAYABLE BY US ON CARRIAGE INWARD & CARRIAGE OUTWARD PAID BY US BUT WHERE WE ARE NOT GETTING ANY BILL / RECEIPT FROM TEMPOWALA FOR THESE CHARGES.THESE CHARGES ARE PAID FROM PETTY CASH.
CAclubindia
