Service tax on freight on reverse charge by proprietor firm
This query is : Resolved
18 September 2012
Dear Sir
My client is a proprietorship in trading.
The client includes freight charges in the price of goods as per agreement.
Now, the purchasers can be any entity e.g. individual, huf,firm, factory, company etc.
My client i.e. seller always pays to transporter.
In my opinion, as seller recovers freight and pays to transporter and no transporters are registered with ST.
My Queries are
1) Is it OK, if seller always pay ST?
2) Exemption of Rs. 10 lacs are not available so seller should register with ST.
Any other suggestion/treatments are welcome.
Regards,
Bhargav
My client is a proprietorship in trading.
The client includes freight charges in the price of goods as per agreement.
Now, the purchasers can be any entity e.g. individual, huf,firm, factory, company etc.
My client i.e. seller always pays to transporter.
In my opinion, as seller recovers freight and pays to transporter and no transporters are registered with ST.
My Queries are
1) Is it OK, if seller always pay ST?
2) Exemption of Rs. 10 lacs are not available so seller should register with ST.
Any other suggestion/treatments are welcome.
Regards,
Bhargav
19 September 2012
Dear Bhargva,
1. The payment of ST by seller is valid.
2. the Seller should get the registration under GTA reverse charge.
1. The payment of ST by seller is valid.
2. the Seller should get the registration under GTA reverse charge.
Message likes :
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19 September 2012
Dear Sir,
Thanks for solving my query promptly.
Regds,
Bhargav
Thanks for solving my query promptly.
Regds,
Bhargav
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