Goods transport agency service, who pays service tax
Querist : Anonymous
As a Consignee, if the Freight is paid by me, then as per reverse mechanism, I have to pay the S T. @ 14%.
As a Recent Case Law, Indian Oxalate Ltd vs Ass. Com Kohlapur West Bench Taken a Decison in the favour of the Govt.
In the above case law, the consignor is arrange the GTA to transport the goods to the consignee. but the consignor charged the consignee the freight amount of the delivery of the goods. Here the Tribunal given against the assessee judgement. and consignor is a person to pay the service tax.
But as per Cenvat Credit rules also, upto the place of removal we can avail the cenvat credit on him.
Kindly give reasons and supportings.of his above discussion.
Query
1) Who is liable to pay service tax. and how it is calculated, if the consignor gets reimbursement of freight from the consignee.
2) Ex: if the Freight charged Rs. 15000/- in the bill itself. then we have to calculate on Freight amount of Rs. 15000/- @ 14% = 2100
15000*14/114% = 1842
Kindly Give suggestion... with supporting's circular/notification
2 Get the details from consignor on service tax payment. The consignor might have added some charges on his part.
Querist : Anonymous
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