i need some clarification on similiar query. If we are sending goods to client by transport, service tax at first step is collected by transporter. client receives goods on thier behalf and pay the amount of l.r..
As per commitment with client, the freight charges paid by the client would be reimburessed to client at the EOY if he settles his o/s account balance within stipulated time span.
In this scenario, if vendor reimburse Freight, is he liable to pay service tax , if so , in what time span ...
what would be the accounting entry for the same
CAclubindia
