18 June 2008
We are getting transpoter's bills with and with out service tax amount.
We understand that the receipent of the services is liable to pay the service tax at the rate amount as prescribed in the act.
pleae let us know whether we can take the credit / set off the amount charged as service tax by the transporter or we have to pay twice e.g. once to the transporter and secondly to the authorities or can we deduct the amount of service tax charged from the bill and deposit the same.
19 June 2008
Bills received from the transporter which is inclusive of service tax, then u need not pay it twice. but if the bill is only for the transport charges then u have to pay to the govt as if u r the service provider only on 25% of the frieght charges.
AND in both the cases u can very well take the input credit for setting output credit
CAclubindia
