mixture of service tax and income tax

IPCC 948 views 4 replies

shivam

3354

319 Points Joined August 2009

hi friends i am having a doubt about the transport business. As we know that as per Service tax, transporter issues a consignment note. but in actual he receives commisssion for providing the service. My question is that what should be the turnover as per section 44AB in case of transporter ie total value of consignment notes or toal commission received.

in the business of transport there are two type of payment of freight

1 on "to pay " baisis where the truck operatot at the time of delievery of goods receives the freight or

2 the amount of freight is either by consignor or consignee, credited into the bank account. after that the transporter gives the full amount to the truck operator. so whether TDS is required to be deducted in the payment to the truck holder by the Transporter.

Replies (4)

CA Sahil Singla..

Service Tax

3746 Points Joined August 2008

ya transporter is required to deduct TDS on payment to Truck owner u/s 194C as a sub contract b/w transporter & Truck owner ...but he can giv form 15 I to transporter if he owns maximum of 2 trucks , so as to escape from TDS

shivam

3354

319 Points Joined August 2009

RE SAHIL:

AS WE KNOW THAT THE SUB CONTRACTOR IS ACTING AS UNDER THE AUTHORITY OF CONTRACTOR BUT HERE THE TRASNPORTER IS WORKING UNDER THE AUTHORITY OF TRUCK HOLDER. LET ME GIVE EXAMPLE

A = TRANSPORTER

B = TRUCK HOLDER

C =CONSIGNOR

NOW IF THE GOODS ARE GOT ACCIDENT OR SAY FIRE THEN THE CONSIGNOR CANT HELD THE A LIABLE AS "A" IS WRITING IN THE CONSIGNMENT NOTE THAT HE IS JUST ACTING AS AGENT OF TRUCK HOLDER

CA Sahil Singla..

Service Tax

3746 Points Joined August 2008

i didn't get wat u r saying..u should approach Experts section for ur query ...

shivam

3354

319 Points Joined August 2009

hi, let me explain the query.

if you are doing audit u/s 44ab, then to arrive at the total turnover, you can simply divide the service tax amount by the rate. say the service tax paid by the service provider has made payment of rs 2.58 then you can say his turnover is rs 100. Now my query is about the same but in case of goods transport agency. so the things are,

turnover as per service tax= amount of freight as stated in consignment note.

turnover as per it act is = total commission received on issue of consignment note being Kachha arahtias

so both of them can be different? and whether payment by transporter to truck holder being payment in nature of payment to principal , attracts TDS or not