SERVICE TAX

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Samir (Querist)
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22 April 2009 SIR,
WE HAVE PURCHASED MATERIAL FROM OUTSIDE THE STATE & FREIGHT FOR THE SAME IS RS. 5000/-. SERVICE TAX IS NOT CHARGED ON THE SAME BY TRANSPORT OR CONSIGNOR . WHETHER WE SHOULD CHARGE THE SERVICE TAX ON SAME OR NOT. IF YES THEN AT WHAT RATE.

THANKS IN ADVANCE

Dayal

Dayal (Expert)
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22 April 2009 As per rule 2(1)(d)(v) of Service Tax Rules, Consignor or consignee who is paying freight will be liable to pay service tax, if consignor or consignee is any one of the following –

any factory registered under or governed by the Factories Act, 1948 (63 of 1948)

any company established by or under the Companies Act, 1956 (1 of 1956)

any corporation established by or under any law

any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India

any co-operative society established by or under any law

any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder

any body corporate established, or a partnership firm registered, by or under any law

If you fall in any one of the above category of persons and is paying freight , then service tax is payable and in this case GTA is absolved from the liability as it is to be paid by the person paying freight.

Brij Bhushan Sangal

Brij Bhushan Sangal (Expert)
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22 April 2009 yes, charged @2.575% and you may take cenvat of giveing amount.Any further assistance, mail me on cabrijbhushan@gmail.com

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