31 January 2014
DEAR SIR WE ARE MANUFACTURER OF INSULATORS AND SUPPLY TO ELECTRICITY BOARD, WE HAVE SUPPLIED MATERIAL TO BOARD AND CHARGES BASIC + EXCISE DUTY + FREIGHT + VAT = TOTAL COST. IN THIS CASE WE HAVE RECOVERED FREIGHT CHARGES @6 RS FROM BOARD IN ALL CONSIGNMENT BUT WE HAVE ACTUAL PAID FREIGHT IS LESS THEN 6 RS. SO THERE WILL BE A DIFFRENCE BETWEEN RECOVER FREIGHT AND ACTUAL PAID FREIGHT. SO ON WHICH AMOUNT WE SHOULD PAY SERVICE TAX AND WE CAN GET ABATEMENT ON GTA 75% OR NOT. ONE MORE THINGS AS PER AGREEMENT WITH ELECTRICITY BOARD IN PRICE SCHEDULE BOARD HAS MENTIONED 6 RS FOR FREIGHT, PACKING CHARGES AND INSURANCE CHARGES
31 January 2014
In any cases you should pay Service Tax on the consideration (money) you received from the customer. If the amount is huge, you can reverse it by issuing credit note and make ST adjustments as necessary.
GTA is applicable only for Goods transport agencies and I am not sure what is your business is.
CAclubindia
