our building (fixed assets) work is on,we purchased sand, the transporter has charged carting charges with material. question is 1) is service tax applicable? if, yes. who is liable to pay.2) what will be the "journal entry".
25 November 2010
Service tax on freight is payable either by the consignee or consignor. Normally the person who is paying the freight is liable to pay service tax.
You should ask for seperate bill for freight and sand or freight should be shown seperately in the invoice, to avoid problems.
Individual consignment upto Rs. 1500/- are exempted from service tax. if the freight amount per truck is less then Rs. 1500/- then no service tax is required to be paid.
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