Service tax on trasport

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VINOD GATTANI (Querist)
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12 October 2012 WE DESPATCH SOME GOODS ON FOR DESTINATION RATE ( INCLUDING TRANSPORT)

WE PAY TRANSPORT CASH ( BELOW 35000 ) DIRECT TO TRUCK DRIVER BY A SIMPLE RECEIPT ( WITHOUT BILTY )

TRUCK OWNER HAVE PAN NO.

NOW WHAT IS OUR RESPONCIBILITY AGAINST TDS AND SERVICE TAX ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 October 2012 1. Since the amount of payment is less than Rs. 35,000/-, TDS is not required to be deducted as the transporter has provided his PAN.

However, if the amount exceeds Rs. 20,000/- the same shall be disallowed u/s 40A(3).

2. Reverse charge is applicable on such freight expenses and accordingly you will have to pay the same after claiming abatement of 75%.

VINOD GATTANI

VINOD GATTANI (Querist)
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13 October 2012 dear sir

what is reverse charhes ?

acording to my knoledge transport payment is allowed upto 35000 cash

VINOD GATTANI

VINOD GATTANI (Querist)
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13 October 2012 liability of service tax is on truck owner (service provider) and he is not charging service tax then how i will pay service tax ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 October 2012 In case of certain services, reverse charge mechanism is applicable.

This means that the responsibility for payment of service tax is on the service recipient. The recipient is liable to pay service tax on his own. The service provider is not required to charge service tax in his invoice.

Read Notification number 30/2012 for more details.

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