Service Tax Registration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2010 Firm A is taking a transport service from B, during the year A has paid amount of Rs. 6,50,000.00 to B for his freight bill, B has charged only the freight amount. After that B issue a statement showing that A will pay Service tax on above 6,50,000.00 invoice. My query is whether A has to pay that service tax on 6,50,000.00 or he need not to pay/even registration of servitax because of his total service is only 6,50,000.00 which is less that 10 Lac.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 July 2010 If the turnover if B exceeds Rs. 10 lakhs then service tax would be liable to be paid irrespective of that whether A has paid B less than Rs. 10 lacs.

Service tax is leviable for the assessee and not partywise.