Service tax on Freight

This query is : Resolved 

12 July 2010 A ltd. forward material To B ltd. through a transporter . The freight to be paid was rs. 100000. however due to negligency of the transporter the material delivered in bad condition for which A ltd. made a claim of rs. 40000 from transporter which was agreed bettween them. now what will be the amount on which service tax deposit for A ltd.

13 July 2010 Base value for calculating is 25 % of actual payment made to transporter.

14 July 2010 thanks


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