SIr, I want to know if transport charges is included in the invoice & vat is calculated on the transportation charges by abc company during despatching the material to customer. and abc company is hired the truck from transporter on contact basis. However during payment to the transporter, abc company pay the transport amount to the transporter & abc company is paying service tax to the service tax dept.

I want to know how can a company pay vat & service tax both on a transportation charges.

A (P) LTD co. is paying fright outward on sales and charged the fright on bills not on actual basis bt on a fixed rate basis and paying service tax on actual expenses basis. total fright charged on sales bills is more than actual expenses. wat is the liability of the co. as it is collecting more service tax and paying less service tax....

Plz explain....

Originally posted by : rahul
	A (P) LTD co. is paying fright outward on sales and charged the fright on bills not on actual basis bt on a fixed rate basis and paying service tax on actual expenses basis. total fright charged on sales bills is more than actual expenses. wat is the liability of the co. as it is collecting more service tax and paying less service tax.... Plz explain....

Where fixed transportation is "added" in invoice, the vendor has no right to charge service tax on such transportation, despite of the fact that he is liable to pay service tax as" user of transport services for carrige outward" but he can neither charge service tax in his bills, nor he can take credit of such service tax unless the place of clearance is "FOT destination" in his excise invoice.

Originally posted by : saroj
	SIr, I want to know if transport charges is included in the invoice & vat is calculated on the transportation charges by abc company during despatching the material to customer. and abc company is hired the truck from transporter on contact basis. However during payment to the transporter, abc company pay the transport amount to the transporter & abc company is paying service tax to the service tax dept. I want to know how can a company pay vat & service tax both on a transportation charges.

adding the "freight outward" makes the goods clearance value clubbed for vat purpose, 

if the company want to exclude the transport charges, then he has to issue "debit notes" for transporf charges, and not to mention the same in bills.

service tax is applicable.

Dear Sir,

We are a Custom House Agent.  We engage the services of transporters, on behalf of our clients (both importers & exporters), pay the transport operators, attach the transport vouchers with our other claims and get the total amount reimbursed by the client.

Our clients want to claim cenvat on the transport amt. reimbursed to us. They undertake to pay the service tax on such transport by themselves & claim cenvat on such service tax on transport  paid by them.

Therefore we enclose the actual transport vouchers with our bills for reimbursement, without adding service tax on such tranport bills.

We hope it is correct.  Please confirm.

Thanks

@ Kalyan V

for reimbursement purpose, use debit notes, in place of invoice, balance is ok.

invoice issued stand good as services tendered. so avoid the invoice for reimbursement purpose.