Service tax on goods transported to various customers

This query is : Resolved

ANUP GOEL (Querist)
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08 November 2013 My Client is a manufacturing & a proprietorship firm deals in Bottle Caps having turnover below 1.4 Crores. Most of the product is sold out of Delhi through Road Transport for which transporter is charging Service Tax @ 3.09% from us.

1. Is it O.K. or not?
2. Do my client has any obligation to take Service Tax Registration when the transporter is charging Service tax from my client?

Please advice

Thanks

PRADIP PATWARDHAN

PRADIP PATWARDHAN (Expert)
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08 November 2013 1. Yes, rate of S.Tax 3.09% is OK.
2. No, as your client is running proprietary business, he has no any liability to pay tax under reverse charge hence there is no any obligation to take service Tax Registration.