service tax payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 sir,

i am transport contractors in Singareni collaires company limited in my name T.srinivas. I had deployed 9 10T Capacity Lorries in SINGARENI. I am filling income tax returns and my net income is Rs.4,00,000.00. The Singareni company limited is asking for Sales Tax Registration.
Service tax is applicable to me or not? If Singareni company deducted service tax in my bills shall i get refund service tax. Please give reply to me.

Thanking you sir.

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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08 July 2011 Hi,
First of all, for clearing any doubt I assume that you issue Consigment Note to your client at the time of trnasportation and your are not mere a Truck Operator. Now coming to your query,
1.you are not required to get registered for Service Tax as your are providing only the service of Transport Agency to Singareni Collaires or to other factory, company or Partnership firm.

2. There is no legal provision to deduct the amount of Service Tax from Transport Agency Bill. I feel your client should not deduct the amount of Service Tax from your bill as this is the liability of your client to discharge the liability of Service Tax on transportaion charges. To safe yourself, start mentioning on the Invoice & Consignment Note that "the liability to pay Service tax is of Consinor or Consignee". Further, in your case you cannot get the refund of Service Tax even if you get register under Service Tax.

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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