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Service tax liablity

sandeep (Accountant) (111 Points)

21 February 2017

We have sent good to Vasai ( Maharshtra) from Surat (Gujarat) for Jobwork. For that the Transport Company raises the Bill of Rs.45000/- My questions are as follows:

1) if Transport company have service tax no. and they charge service tax, will we liable to pay service tax as service receiver and take service tax no. in reverse charge mechanism.

2) if Transport company do not have service tax no. and they mentioned on bill that service tax will be paid by party, will we liable to pay service tax as service receiver.

3) will we show transport expneses in our books witout paying service tax ( in cash ). What is the criteria / limit

Awating for your valuable reply.

Thanks

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1 Replies

Alaknanda (STUDENT) (31 Points)
Replied 21 February 2017

In first case you are required to pay service tax if you are a factory , society (regd or unregd) ,regd dealer of exciable goods, body corporate firm or aop. It may noted that here the judgement of rastriya ispat Nigam Ltd. Vs Diwan Chand ram Saran applie as you have already paid your service tax. So you should have to pay tax. In the second case also you have to pay service tax. Yes you can show it as transport expense in boks but you can claim CC by GAR 7 only. But this expense will not be allowed for deduction for determining taxable profit.