Service tax

My client  is ma trader in coal. He is having a Pvt Ltd company & a proprietorship concern. He purchase coal from Eastern Coal Fields Colliery and sells goods to various factories here & pays goods carriage inwards /freight /transportation charges to various lorries & the amount comes to  more than one crore in a Finanacial year. He is not registered under Central Excise Act / Service Tax.

 Is he liable for payment of service tax / should he liable for collecting / paying service tax.

Kindly advice with regards to financial year 2006-07 to 12-13.

  

Replies (1)

Private Limited company is in the specified category and is liable to pay service tax under reverse charge and therefore the company needs to take registration and pay service tax.

You can avail the benefit of VCES scheme

In case of propreitorship firm for the period upto 2011-12, service tax under reverse charge would be applicable. However, w.e.f 2012-13, no service tax liability will arise on the proprietor ship firm as the word consignor or consignee was replaced by person liable to pay freight.

 

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