Service tax on goods transport agency

Save Share

This query is : Resolved

Darshan P Dedhia (Querist)
Follow

11 July 2013 Dear All,
Please help me solve my below mentioned query:

A Ltd. is a Custom Clearing Agent. In order to provide all around services to its customer B Ltd. it provides in addition to Custom Clearing Service, Transportation of Goods. However in order provide transportation service it does not own any vehicles. It hires vehicles from another transporter C Ltd. at say Rs. 5000 and charges its customer B Ltd Rs. 10000.
Now my query is, who will liable to pay service tax under RCM i.e. A Ltd on Rs. 5000 or B Ltd on Rs.10000 or Both.

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

11 July 2013 Service recipient is liable to pay service tax under reverse charge system. In your case B is a recipient they are liable to pay service tax of Rs. 10,000/-. Agent is not recipient of service.

Darshan P Dedhia

Darshan P Dedhia (Querist)
Follow

11 July 2013 What if A Ltd is not agent? It is registered under service tax under category of Transport of Goods by road.

Darshan P Dedhia

Darshan P Dedhia (Querist)
Follow

11 July 2013 What if A Ltd is not agent? It is registered under service tax under category of Transport of Goods by road.

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

11 July 2013 A is not recipient of services. actual recipient is B.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now