Service tax on diffrence between freight received and paid
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 December 2014
Dear Sir We are manufacturar of Porcelain Insulators and Supply to Government Electricity Board. There is difference between freight collected from buyers and paid to transporter. we are paying Service Tax on Freight paid to Transportar. In our unit Service Tax Audit Department has taken Objection and Pressurise us to pay Service TAX on Full Rate on Diffrence Amount what WE have received. They are consider under Business Support Service / Business Auxilary Service. WHAT WE SHOULD DO IN THIS MATTER PLEASE SUGGEST If any Judgement Suggest me Sir. Thanks & Regards Jayendra Patel Prime Insulators Pvt.Ltd.
CA R SEETHARAMAN
(Expert)
05 December 2014
You are liable to pay service tax on difference amount considering it as service provided on your part for the difference amount.
CA Parul Saxena
(Expert)
05 December 2014
This is very confusing thing even i am confused in this...if we would pay service tax on freight received from buyers then it will be a situation where we are paying service tax as service receiver (in case of transport) as well as service provider (in case of buyer)
05 December 2014
agreed with seetharam's view.....................
CA Parul Saxena
(Expert)
08 December 2014
In case of cartage received from customer service tax will be leviable as Business auxilliary services agreed with the fact. But please tell me whether limit of Rs.750 and Rs.1500 will be leviable in this case as is applicable in the case of transports.
CA R SEETHARAMAN
(Expert)
08 December 2014
If treated as transport charges the limit is applicable.
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