concept on "behalf of assessee"

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2011 Suppose i have purchased car costing 100000 from TATA MOTORS
,further i request tata motor to call engineer for inspection of the car(costing10000). The total payment made to tata motor is 110000(car cost+inspection cost,on behalf of engineer).
as per above discussion .... the transaction value(assessable value) is 110000... hence excise duty shall be charged on 110000.
NOW the point is that when the payment shall be made to engineer (by tata motors) than he will charge service tax to tata motors, suppose there is heavy differnce between the rate ... than who will bear the loss.....
like excise rate is 8% and service tax rate is 10%..... than in this case why the will bear the extra 2% on 10000... as company has charge only 8%..

Is this process is right ..... and if yes than what is the concept behind such provision.....

NOTE- DONT GO BEHIND THE EXAMPLE.... JUST SEE THE ISSUE..... WHICH I WANT TO ASK...........

PLZ THINK AND ANSWER...... WITH PROPER CONCEPT........BECS I M NOT GETTING THE LOGIC.....BEHIND SUCH PROVISION

U S Sharma

U S Sharma (Expert)
Follow

18 May 2011 1) if the buyer has asked for inspection then buyer is liable to pay the inspection fees, not tata motors

2) tata motors will issue the invoice of car with ed paid on 1 lac, he will not include the value of inspection at any time, whether it was paid by tata motots also, he will issue seperate debit note for such amount which is paid to inspection for reimbursement from buyer.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now