Service tax on transportation
This query is : Resolved
04 September 2013
We are a trading co. supplying coal.
Transporter supplies coal to our buyers. But, transporter issue invoice to us and we than issue invoice to our buyers in our firm name.
Challan goes to buyer with our firm name.
My query is whether we have to pay service tax
1) if we issue invoice to our buyer with same amount which transporter charges to us and
2) if we issue invoice after adding some amount to which transporter charges to us.
This is our 1st year and we have not crossed 9 lacs limit.
Transporter supplies coal to our buyers. But, transporter issue invoice to us and we than issue invoice to our buyers in our firm name.
Challan goes to buyer with our firm name.
My query is whether we have to pay service tax
1) if we issue invoice to our buyer with same amount which transporter charges to us and
2) if we issue invoice after adding some amount to which transporter charges to us.
This is our 1st year and we have not crossed 9 lacs limit.
04 September 2013
See person liable to pay frieght is considered as service receiver and he is liable to pay GTA service tax,,
.
.
So if Customer is liable to pay frieght he is service receiver and he suppose to pay service tax on GTA..
.
here even though you paid frieght to GTA you have just paid on behalf of buyer but buyer is responsible to discharge GTA liability and you can collect amount paid to GTA on behalf of buyer by way of Debit Note
.
.
The small service provider exemption of ` 10 lakhs not available when tax is payable under reverse charge.
.
.
.
So if Customer is liable to pay frieght he is service receiver and he suppose to pay service tax on GTA..
.
here even though you paid frieght to GTA you have just paid on behalf of buyer but buyer is responsible to discharge GTA liability and you can collect amount paid to GTA on behalf of buyer by way of Debit Note
.
.
The small service provider exemption of ` 10 lakhs not available when tax is payable under reverse charge.
.
05 September 2013
Thank You for replying.
Sir, my query is GTA has issued INVOICE to us mentioning "Service Tax to be paid by consignee."
And than we have issued INVOICE by increasing the freight amount to our buyer mentioning "Service Tax to be paid by consignee."
So, we are not paying on behalf of our buyer but we are collecting some extra freight from buyer.
Some Tax experts are saying we are also liable to pay service tax.
So, still do you think we are not liable to pay Service Tax and only buyer will pay service tax?
Sir, my query is GTA has issued INVOICE to us mentioning "Service Tax to be paid by consignee."
And than we have issued INVOICE by increasing the freight amount to our buyer mentioning "Service Tax to be paid by consignee."
So, we are not paying on behalf of our buyer but we are collecting some extra freight from buyer.
Some Tax experts are saying we are also liable to pay service tax.
So, still do you think we are not liable to pay Service Tax and only buyer will pay service tax?
05 September 2013
I do agree that service tax applicable on you in above case
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Forfeited advance money treatment in Income tax
- Filing d ITR by registered legal heir
- Tax implications of gift to maternal uncle
- Closure of a PVT LTD company
- 26QB correction - no data available error for fully consumed/processed with default
- Took advance of Rs 500000/ for supply of iron goods
- Real estate business by a partnership firm where both of the partners are SC/ST
- ROC filings for the first year of incorporation
- Escrips ROdtep time limit
- Short term capital gain Section 87A
- Partnership deed reconstitution in how much stamp paper in uttar pradesh
- Please help with SAC Codes (6 digits) for below mentioned services provided by Chartered Accountant
- Need to send letter to GST dept. For claimed missed ITC
- PRINTING PRESS UNDER COMPOSITION SCHEME
- 140-A TAX WRONGLY PAID PAN NO
- CSR funding for private limited companies
- SAC codes for Chartered Accountant
- Professional tax deduction monthly
- Cross charges verses Isd methof
- Refund Application in RFD 01 for Export without payment of tax
CAclubindia
