Originally posted by : nitin suvarna |
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hi,
i had earlier posted regarding this query ie. service tax applicability on transport of goods through waterways.As regarding its solution service tax needs to be deducted on such transport charges if service is delivered within ports in india. My query here is if the assessee fails to collect S.T knowingly or unknowingly, what are its consequences & what are the hardships a client may face for this??Also whether there is any kind of loophole where one may try to escape the consequences for it. |
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1st of all you must be clear that service tax is not a deductible tax, it can be either paid or exempted, but in no case it can be deducted.
2nd . the service provider may have been availing exemption of 10Lacs,
3rd, the liability of service tax in case of transport of goods through waterways laid with service provider, and the service receipent is not liable to pay service tax on it, irrespective of fact that service tax is charged by service provider or not, ( in case of GTA the same is payable by receipent, if the ST is not charged by GTA)