We are Sending semifinished Goods for Assembly under 4(5)(a) Challan to our Sister Concern at SRIVARDHAN Though ST Parcel (Sri Sai Baba Transport & Courier Services)
My Question is that :- above Transporter is registered under Service tax (GTA) Category. When we send our goods though him he is giving LR Receipt to us showing Service Tax amount is NIL. "Whether we have to pay Service tax for amount above 750/- or not.
The amount of Rs. 750.00 is not the basic exemption. If the amount per consignment exceeds Rs. 750.00, you need to pay tax on the whole amount,, subject to abetment.
Whether the amount of Rs. 750.00 or Rs. 1500.00 should be the basic exemption, in case of full truck load consignment, is a matter of diffferent interpretation. The question is under examination before the Chennai Tribunal. We need to wait for the verdict.
If you can avail credit, discharge the tax, to avoid demand in future.
CAclubindia
