Service tax on propritorshi firm for transport payment

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We are a propritorship firm. No of times we sent the goods to our parties and charged the freight in invoices as our parties are not given the freight.

We ask the transporter to give us the Bilty of service tax. but he refuses says he is a small man and does not comes under the service tax rule as his turnover is only 5 lakh p.a. 

now the service tax departnment insist us to take service tax no and chrge service tax and paid the service tax amount.

pl suggest us what we do as somebody says us that individual propritorship firms does not require service tax no and to pay service tax

 

 

 

Replies (2)
Dear Vinay, Form the query it appears that transporters are charging freight from you and you are recovering the same from customer by charging the freight on your bill. In case goods transport by road the liability to pay service tax is on receipient. However if your firm is not a registered dealer under excise law then reverse charge will not be applicable. The second transaction i.e. you charge freight from customer may be pure reimbursement supported by the bill given by the transporter then your firm may not be liable to service tax. Some more facts needs to be exmined for the confirm opinion on his fact. For that you can mail further derails to ashokgarg82 @ gmail.com.
Dear SIr , Apparently known that you are proprietor and taking GTA services . In such case SP is liable to pay ST. no reverse charge will be applicable here. No action can be taken against you.


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