Freight revenue

Save Share

This query is : Resolved

sharad (Querist)
Follow

06 July 2016 Dear Sir,

We are MNC we charge freight (after excise duty)to our customer and pay transport charges to our transporter .

Suppose we collect form customer 10000/- and pay 5000/- to our transport (we pay GTA on Rs-5000/-)

In this case what we should do? we need to pay GTA on 15000/-or Excise duty on 10000/-

Please guide with circular no or case law.

Thanks & Regard
Sharad Jadhav

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

06 July 2016 You are liable for service tax on 5000 paid to GTA under Reverse charge mechanisam.
You are also liable for service tax on 10000 collected from customer. Claim input tax credit on service tax paid on 5000 against this payment.

sharad

sharad (Querist)
Follow

06 July 2016 Dear Sir,Thanks lot
But my concern is whether we need to pay excise duty because of additional consideration under rule 4,5,6 of valuation.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

06 July 2016 No excise duty payable on such freight.

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