03 December 2011
Sir, Kindly let me know who is liabale to pay service tax on transport contract. And what is the rate of tax and also abatement if any?
03 December 2011
Service tax is always a liability of Client, Service provider can only collect it and pay to the department under his registration. Normally 2.5% Service Tax 2% Education Cess and 1% Higher Education Cess is charged on gross amount of Transport (i.e 2.575%).
06 December 2011
Sir, With respect to above my query is suppose transporter gives bill of rs. 100000 and no mention of service tax separately, then what shall be the amount of service tax we(we are paying freight) shall pay . Whether service tax amount shall be calculated by reverse calculations i.e 100000/110.36*10.36 or whether it shall be rs. 100000*10.36%.
CAclubindia
