Liability on st

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Yogesh (Querist)

03 October 2013 Dear Sir
Please solved my query
1.Transporter can be charge service tax on their bill for transportation of goods. In which section or act

2.If transporter charge Service tax on their bill for transportation of goods, company has to liable for create liability of Service tax on transporter bill. please solved with act.

Thanks

Shyam Lal Naik

Shyam Lal Naik (Expert)

03 October 2013 Service tax on Transport or any other service is charged/levied under the Finance Act, 1994.

The liability to pay service tax is on the transporter primarily. However under certain circumstances, the liability is shifted to the person paying the transport charge. This system is popularly known as Reverse Charge.

It appears from the query that the service receiver is a company and hence has to create the service tax liability.

Yogesh

Yogesh (Querist)

03 October 2013 tranporter can be charge ST on their bill

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