service tax on gta

This query is : Resolved

CA Vijay Agrawal (Querist)
Follow

01 February 2009 my client is a factory and has entered into agreement with some agencies to process goods and transport the finished goods to agency. the transportation charges for this both inward and outward are paid by factory but reimbursed by agency after completion. who is liable for service tax on gta whether factory or agency?
supportive legal provision is appreciated

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

02 February 2009 Whoever is paying the freight is required to pay the service tax on freight. The service tax is incidental to the freight charges.
Off course, the factory can take reimbursement of freight from the agency, including Service Tax paid.

CA Vijay Agrawal

CA Vijay Agrawal (Querist)
Follow

02 February 2009 Sir,
The agency is not agree to reimburese the service tax to factory.In agreement they have clearly stated that all sorts of taxes shall be borne by factory.
further freight is shown as advance to agency by factory till reimbursement as it is not the transportation expenses of factory . kindly suggest in the matter with provision

CA Vijay Agrawal

CA Vijay Agrawal (Querist)
Follow

02 February 2009 kindly suggest if there is any possible ways to save taxes from department by the factory?

CA Vijay Agrawal

CA Vijay Agrawal (Querist)
Follow

02 February 2009 what about inward transportation of input goods into factory?

CA Vijay Agrawal

CA Vijay Agrawal (Querist)
Follow

02 February 2009 yr suggestion at an early is my need of time

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Joyashish Maitra

Vidish Bhatt

ABHISHEK AGRAWAL

Vidit Ratanghayra

sumit

Subscribe Now

service tax on gta

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

Manager- Finance and Compliance

GST CONSULTANCY

CA Final

Senior Executive

GST CONSULTANT