Service tax on job contract
This query is : Resolved
14 December 2012
A firm ABC is given job contract for operation of petrol pump by a oil company. ABC purchased material from that oil co. at market selling rate (means selling rate to customer) to sale in market. It gives monthly sold stock details to oil co. to get his profit margin in form of remuneration. The co. was reiumbursing the same after deducting TDS. My question is that will service tax is attracted on this transaction?
The purchase bill from oil company are in the name of firm. the firm purchased the stock say @75 rs per litre and sold it on 75rs per liter. every other regular dealer is also getting the same differnce as profit as we were the only diff. is that they get their margin on sale and we have to get reiumburse from the oil company.
ssi exemption benefit is avaialable to the firm in thii case?
The purchase bill from oil company are in the name of firm. the firm purchased the stock say @75 rs per litre and sold it on 75rs per liter. every other regular dealer is also getting the same differnce as profit as we were the only diff. is that they get their margin on sale and we have to get reiumburse from the oil company.
ssi exemption benefit is avaialable to the firm in thii case?
14 December 2012
Yes, Service tax should be charged on such service since you are acting as a commission agent
14 December 2012
In your case, the title in the goods never passes on to such agent to come within the ambit of trading of goods and it is termed as provision of service.These are auxiliary for trading of goods and service tax should be charged on the bill
14 December 2012
ST will be applicable only on your commision part.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Itr 1 processing
- Reporting Income under Section 44ADA
- ITR validation error - Balance sheet is not filled
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR 1: Details for showing Exempt Income
- Share accounting-->fifo - capital gain - period as per fifo?
- Registration as Authorised Representative of minor
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
