19 June 2012
If the transporter is providing service of transport of goods by road to an Individual/HUF then he has to charge service tax. In this consignor is not liable to pay service tax under reverse mechanism.
20 June 2012
Where the consignor or consignee of goods is "specified persons" the person liable for paying service tax shall be any person who pays or is liable to pay freight either himself or thro his agent for the transportation of such goods by road in a goods carriage. Specified persons Factory, company, statutory corporation, regd society, co-op society, excisable dealer, firm.
Under the reverse charge method,individuals HUF are not liable and only specific persons are liable to pay 25% of the freight amount after availing 75% abatement. (Freight amount Upto Rs.750/- there is no service tax)
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