hello everyone,
i got a querry from one of my client about service tax, here i am giving you the facts of the case:-
the client is a manufacturer, he pay frieght for the goods he sold and subsequently recover that from the debtor by adding that frieght(including service tax) in the invoice (after adding Sales tax) .now the question is whether service tax(with frieght) collected from the debtor(output) and service tax(for frieght) paid to the transporter(input) should be shown in the excise return or not.
my view was that it should not be shown in the return bcz we are manufacturer and not service provider so we cannot show service tax collected, and as this is not our expense we will not avail input on it. so we should show it simply as reimbursement from the customer as we paid frieght on behalf of the customer.
i want you to study the case and give its solution
your response will be highly appreciated. ::)
CAclubindia
