We have registration under business auxilary services and providing various types of service which includes Transportation. We get the transport service from our Transport contractor and we pay towards it without service tax due to it is non taxable. We charges the same to our customer (here we are a intermediary).
Should we charged Service Tax to our customer on Transport..?? if yes, on which rate i.e. 14% or any else..??
Please suggest any other provisions regarding this.
In case of Goods Transport Agency services, the service recipient will have to pay the Service tax on reverse charge mechanism. Hence in your case if you are availing services from the transport agent, you have to pay on reverse charge.
18 June 2015
Thank you for reply But the same transport service provided by us to our customer. should we charged the service tax to our customer @14%, as we not holding registration under GTA.???????
18 June 2015
Yes, if you providing it as a service to your customer. Are you charging any excess amount as commision, etc. Also send me an exact transaction. I need to see the transaction inorder to suggest you anything further. You can mail it on cmasantoshkalburgi@gmail.com
We have received Transportation service from transporter at Rs.16500 and we charged the same to our customer appox. Rs.20000. But we not provide separate bill for transportation. We billed it with our other clearing & forwarding services.
Should we charged the Service Tax@14% on Transportation ? or passed on the liability to end recipient (customer)..?? And also suggest if the same service is provided to Exporter ??
CAclubindia
