25 August 2014
My father is a Proprietor of a Goods Transportation office with a turnover of more than Rs. 1 Crore & he works on contract basis for lifting material from a limited co. to the respective parties. He do hire lorries from market & pay them hire charges for providing lorries, for which he gets freight paid either on 'Freight Paid' basis or on 'To Pay' basis.
A few days back, he lifted a material from such limited company for a freight of Rs. 10,000/- but such freight was on 'To pay' basis & so, was payable by the consignee. He got instructions from the consignee to charge ST in his bill @ 3.09% on freight amount & then such ST shall be payable by my father (proprietor of GTA). And so he did the same, so now MY QUESTION IS: -
1) Is he liable to pay ST or rather he can claim to be small service provider within the limit of Rs. 10,00,000/- (10 Lacs);
2) If its YES & he is liable to pay ST then what shall be the amount on the freight charge of Rs. 10,000/-;
3) By what time shall such ST is to be get paid;
4)Please provide me if there is any exemptions that can be claimed;
5) Please provide me with the provision mentioned in ST rules;
CAclubindia
