service tax on gross freight or net freight
This query is : Resolved
bhushan gupta
(Querist)
15 June 2009
sir,
Please clarify the applicability of service tax in the following situation?
1.Mr. A has purchased rice 100qtls @2500/- amounting to Rs.250000 on ex-factory basis from B.The rice is sent to A through Transport agency for freight of Rs.32000/-. At unloading weight is 98qtls. Now there is shortage of 2qtls amounting to Rs.5000/-.So, A has deducted this amount of Rs.5000/- from the freight payable to GTA, and paid Rs.27000/- to GTA.
Please clarify whether service tax is applicable:
a) on 32000/-.or
b) On 27000/-
Please explain it because it is happening in every industry.
Please clarify the applicability of service tax in the following situation?
1.Mr. A has purchased rice 100qtls @2500/- amounting to Rs.250000 on ex-factory basis from B.The rice is sent to A through Transport agency for freight of Rs.32000/-. At unloading weight is 98qtls. Now there is shortage of 2qtls amounting to Rs.5000/-.So, A has deducted this amount of Rs.5000/- from the freight payable to GTA, and paid Rs.27000/- to GTA.
Please clarify whether service tax is applicable:
a) on 32000/-.or
b) On 27000/-
Please explain it because it is happening in every industry.
Ram Avtar Singh
(Expert)
15 June 2009
Service tax on Payment basis you have paid 27000 service tax to be paid on 27000/= and tds to be deduct on 27000/=only
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