Service Tax on Goods Transport Agency

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2011 Hi, Can anyone help me on below query...

While auditing in the Company I got the two invoice of Freight Inward as below...

Ist was from
Transport XYZ
Freight 15000
only freight was the total amount...

2nd was from ABC Transporteer

Freight 15000
service tax 387
Total 15387

The company who is receiving service has a service tax registration no and excise no.

My first query is in first case:
Do we require to pay the service tax on Rs 15000 and deduct the amount of service tax from 15000 or pay the vendor with full amount.

What would be the treatment in the 2nd case....

Thanks

S.P.Mahanta

S.P.Mahanta (Expert)
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05 July 2011 Reply to Audit query 1
It is to be enquired whether GTA is exempted agency from Service tax payment or having STC no. If not, as Service receiver, Company to deduct Rs.387/- from freight amount & pay bal:amount to transporter.Service tax deducted to be deposited with dept: alongwith amount of ABC Transporter.