Vijay Kumar (Job) (41 Points)
05 August 2009
Dear Sir,
We are one of the supplier company and we are supplying various material to clients. For this transport charges will be reiumbursed on basis of actual payment was made.
In this connection can we submit all my transport bills in one invoice (along with LR copies). Ex: Ten transport bills in one invoice.
Is there any Tax issues...? like Service tax or Sales tax issue will come....?
Pl. advice
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 05 August 2009
U CAN DO SO BUT SERVISE TAX IS APPLICABLE ON YOU.
YOU ARE COVERED UNDER "TRANSPORT OF GOODS THROUGH ROAD" SERVICES IF YOU ARE TRANSPORTING IT THROUGH ROAD OR "TRANSPORT OF GOODS THROUGH RAIL" OR "TRANSPORT OF GOODS THROUGH AIR" ACCORDINGLY.
YOU HAVE TO SHOW SERVICE TAX ON 25% OF THE INVOICE AMOUNT @ 10.3% BUT DO NOT ADD IT IN THE INVOICE AMT.
THAT SERVICE TAX HAS TO BE DIRECTLY PAID BY YOUR CLIENT TO THE GOVT.
THUS YOU CANNOT TAKE CENVAT CREDIT OF THAT SERVICE TAX.
FOR ANY FURTHER CLARIFICATIONS PLZ DO LET ME KNOW.
FOR CONSULTANCY CALL ME ON +91-9893404305.
REGARDS,
CA RITESH KOTHARI
A. Kiran Kumar
(Manager - Indirext Taxation)
(156 Points)
Replied 05 August 2009
Dear Ritesh Sir,
In the case of Mr. Vijay Kumar, supplier (consignor) is going to reimburse the transport charges actually paid to the Transporter from his customer (consignee). As far as the GTA is concerned the person who pays the freight has to pay service tax. Being the receiver of the GTA service and the payment of transportation charges made by him to Transporter, the consigner (supplier) has to pay service tax on the said GTA Service. So the service tax liability can not be passed to consignee.
If the supplier is arranging the transportation and the charges thereof paid by him behalf of his customer (consignee), then the liability of service tax will be on consignee. If the case is so the consignment note & the invoice should be reflected the same.
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