14 December 2015
Dear experts, A suppliers partnership firm has paid freight Rs. 3000/- on the behalf of it's buyer, the buyer is engaged in proprietary firm also not registered in excise, plz let me know weather suppliers is liable to pay 30% ST on 3000, or not if yes can supplier avail cenvat credit for the same however buyer will reimburse only freight amount to us not ST amount.....
14 December 2015
IF a Firm has paid freight to transporter then it is obvious that it has to pay service tax on the value after abatement (not 30% ST, it is value*30%*14% (also sb cess)) Cenvat Credit cannot be utlised for the payment of Service Tax under Reverse Charge but what we have paid as a Reverse Charge in Service Tax we will get credit
CAclubindia
