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Service tax

SANDEEP TIWARI (Student CA Final ) (85 Points)

11 June 2016

Whether excess air freight charged by CHA agent to its client in the bill is liable for service tax ?

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9 Replies

karan jit singh (Consultant) (1299 Points)
Replied 11 June 2016

YES, for sure. No doubt about that.

Regards Karanjit Singh | +91-7503588224

Read more at: /forum/krishi-kalyan-cess-pending-payments-361722.asp

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SANDEEP TIWARI (Student CA Final ) (85 Points)
Replied 11 June 2016

What if CHA would have charged to the client only the amount paid for Air-freight ?

karan jit singh (Consultant) (1299 Points)
Replied 11 June 2016

Originally posted by : SANDEEP TIWARI
	What if CHA would have charged to the client only the amount paid for Air-freight ?

It means CHA is small service provider and not registered, thatsy not charging ST on excess amount or Commission.

SANDEEP TIWARI (Student CA Final ) (85 Points)
Replied 11 June 2016

In my case CHA is not a SSP and he has charged air-freight to the client in excess of the amount paid for the same. My point is that: (i) if CHA is charging anything extra to the client for any expense the primary liablity of which is of the client then the whole amount is liable to service tax and (ii) if only amount spent is being charged then service tax is not chargeable.

Now in point (i) whether whole freight amt or only excess charged is liable for service tax ?

Please clarify.

karan jit singh (Consultant) (1299 Points)
Replied 11 June 2016

Originally posted by : SANDEEP TIWARI
	In my case CHA is not a SSP and he has charged air-freight to the client in excess of the amount paid for the same. My point is that: (i) if CHA is charging anything extra to the client for any expense the primary liablity of which is of the client then the whole amount is liable to service tax and (ii) if only amount spent is being charged then service tax is not chargeable. Now in point (i) whether whole freight amt or only excess charged is liable for service tax ? Please clarify.

IF the extra amount is charged by your CHA is reimbursements , then No st is chargeable. Whole freight amount is never chargeable to ST as its mere a reimbursements.

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SANDEEP TIWARI (Student CA Final ) (85 Points)
Replied 11 June 2016

EX. Air-freight= Rs.10,000 and adding profit of Rs.2000 bill is made for Rs.12,000. Now ST is applicable or not? If yes on which value ?

Rs.2000 is profit of CHA

karan jit singh (Consultant) (1299 Points)
Replied 11 June 2016

Originally posted by : SANDEEP TIWARI
	EX. Air-freight= Rs.10,000 and adding profit of Rs.2000 bill is made for Rs.12,000. Now ST is applicable or not? If yes on which value ? Rs.2000 is profit of CHA