Hi there,
i am currently involved a Statutory Audit for a ice cream Manufacturing Company for Financial Year (2008-09),since they dont have Excise Duty there are no issues with that.
But they engage a lot of Transporters for freight and Transport of ice creams (FG) as well as Freezers to Dealers & Distributors. Most of these operators are individuals who dont even raise bills for their services. The company only prepares a trip sheet and get it signed from the drivers. Now my question is whether these people come under Goods Transport Operators and Should the Company Pay service tax on these services procurred. As far as i have seen the company does not pay service tax on these also it doesnt have Service tax reg.
What is the Criteria to get categorised as Goods Transport Operators?
What is the Risk involved if company Doesnt Pay Service tax on these services procurred ?
Thanks & Regards
SANTHOSH KUMAR.V