I am working in a shipping company. We hired transportation from other company and provide service to our customer. we raised the invoice adding service tax 12.36%. few customer refused to pay and request us to put "service tax payable the customer directly" and few ask us to s.tax percentage is 3.09%. please help me out in this regards.
22 August 2013
The objection of your customer is correct. you need not to charge service tax on Transportation as service provider. As per reverse charge mechanism Service Receiver is liable to pay service at the rate of 3.09%
CAclubindia
