Who will bare service tax liability?
This query is : Resolved
18 October 2010
Dear,
I am going show here a specimen of an invoice
you have to give me answer of my all questions.
Sales 400000
Vat 4% 16000
Total 416000
freight paid on
your behalf 15000
----------
Gross total 431000
1)My question is whether this presentation of invoice is correct or not.
2) I am paying freight on behalf of party,
who will pay the service tax liability.
3)According to business audit, am i doing something wrong?
4) Should i charge vat on freight? if yes then where it is written in law.
5) if transportor and the consignee don't pay service tax, shall i have to pay service tax at the end?
Kindly answer of my all questions.
I am going show here a specimen of an invoice
you have to give me answer of my all questions.
Sales 400000
Vat 4% 16000
Total 416000
freight paid on
your behalf 15000
----------
Gross total 431000
1)My question is whether this presentation of invoice is correct or not.
2) I am paying freight on behalf of party,
who will pay the service tax liability.
3)According to business audit, am i doing something wrong?
4) Should i charge vat on freight? if yes then where it is written in law.
5) if transportor and the consignee don't pay service tax, shall i have to pay service tax at the end?
Kindly answer of my all questions.
19 October 2010
Whereever freight is charged on invoice , VAT will alos be payable on freight amount.
Service tax will be payable by you , when you are making the payment to transporter. So it will be better to calim total amount i.e. transport charges plus service tax from transporter.
Service tax will be 10.3% on 25% value of transport charges.
Service tax will be payable by you , when you are making the payment to transporter. So it will be better to calim total amount i.e. transport charges plus service tax from transporter.
Service tax will be 10.3% on 25% value of transport charges.
19 October 2010
The consignee/ consignor responsible for paying the freight is liable to pay the ST. You may ensure that the transporters invoice is for the same amount i.e.15k and pass the saem onto the cusotmer for his ST payment. If he does not pay then it is his problem.
Freight is normally deductible under VAT but not under CST. [ you need to verify this in your local law]
Your invoice appears to be correct. Confimr in your local VAT law that freight is deductible.
Freight is normally deductible under VAT but not under CST. [ you need to verify this in your local law]
Your invoice appears to be correct. Confimr in your local VAT law that freight is deductible.
19 October 2010
Also you have to charge Service Tax (10.3% )amount on 25% value of frt. in Invoice.
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