01 November 2008
I am in Private Limited Company. we are procure Milk, Process and Selling to Distributor. For procurement from farmers and selling to distributor we are paying transporation to Individuals on 10days basis (around 80000). However there is no scope for LR as they are the employing just vehicale and driver. All other activity is done by us. 1) My question is, whether service tax is applicable? 2) Under which section, it applies to us? 3) What is the procedure if it is applicable? Please guide me. Thanks in advance.
01 November 2008
your query is not clear. I understood like this. You want whether you need to pay service tax on transportation charges as user of services.
you need to pay the service tax on utilisation of the transporation service.
need not to accompany the LR. you can mention not available.