Carraige inward - service tax on gta

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This query is : Resolved

Dipul mehta (Querist)

08 August 2014 Sir,

we have one party whom we purchase the capital goods, transportation charges paid by party (seller) and they reimburse it from us by issuing debit note.. can we are liable for service tax or the other party?? and what entry we passed in our accounts... plz clarify this..

CA Parul Saxena

CA Parul Saxena (Expert)

08 August 2014 yes you are supposed to pay service tax as ultimately transporation charges are borne by you.
Cartage Inward Dr........................
Service tax Dr............................
To Customer................................
To Service tax payable......................
(Being cartage exp. booked)
Customer Dr..............................
To Bank....................................
(Being cartage amount reimbursed to customer)
Service tax payable Dr./................
To cash/bank...............................
(Being service tax amount given to department)

Rupesh Jain

Rupesh Jain (Expert)

09 August 2014 service tax paid by you due to amount of freight paid by you.

or if the seller submit the declaration that he have already pay the tax on that freight then you can take this as a proof of tax payment.,

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