Man (Accountant) (77 Points)
22 April 2013Dear all,
We supply material to our clinet. We arrange for transport & pay the transporter directly. We are claiming a lump sum amount from client as transportation charges irrespective of actual expenses (via debit note). Now my question is wether we are liable to collect service tax on such transport debit note raised by us or not?
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 22 April 2013
No transportation of goods is in negative list which excludes only GTA. As you are not the GTA there is no ST liability on you.
Man
(Accountant)
(77 Points)
Replied 22 April 2013
Thanks Mr Madhukar,
One small query, If we are paying service tax on GTA (as a service recipent) then can we claim that credit?
I heard from some sources that 1st we need to pay the tax in cash & then we can avail the input credit.
But it seems to be confusing, as what is logic behind paying tax & claiming entire credit against it!
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