Liability on st

Save Share

This query is : Resolved

Yogesh (Querist)
Follow

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)
Follow

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)
Follow

03 October 2013 tranporter can be charge ST on their bill

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