Servicet tax for transport charges payments
This query is : Resolved
09 November 2012
Hi,
Question 1
Do service tax have to be paid for transportation expenses that a pvt ltd is incurring in procuring material and sending finished product to customers.
If yes how much percent of the total assessable value will be considered for service tax as per reverse charge methord applicable from 01.07.2012.
Question 2.
What to do
a)if the transport provider included service tax
b)if the transporter didn't include service tax.
Question 1
Do service tax have to be paid for transportation expenses that a pvt ltd is incurring in procuring material and sending finished product to customers.
If yes how much percent of the total assessable value will be considered for service tax as per reverse charge methord applicable from 01.07.2012.
Question 2.
What to do
a)if the transport provider included service tax
b)if the transporter didn't include service tax.
CA Sahil Singla..
(Expert)
09 November 2012
Que1
1.If you are being issued Consingment note by Agency,then pay 12.36% on 25% of freight on monthly basis.
Que2
1. If as per Que 1 you are liable to pay service tax, then it becomes your duty to pay the same directly to govt. It is better to argue with the Transporter & tell them not to charge service Tax in your bill. Otherwise, you will have to pay service tax twice.
1.If you are being issued Consingment note by Agency,then pay 12.36% on 25% of freight on monthly basis.
Que2
1. If as per Que 1 you are liable to pay service tax, then it becomes your duty to pay the same directly to govt. It is better to argue with the Transporter & tell them not to charge service Tax in your bill. Otherwise, you will have to pay service tax twice.
09 November 2012
Thanks sahil, we received bill from transport agency pertaing to transportation charges and he has included service tax.
One more thing i want to clarify and that is in case we have to pay then do we have to pay 25% or 100% of value of freight , somewhere i read that it case of transportation receiver have to pay tax on 100% of value.
One more thing i want to clarify and that is in case we have to pay then do we have to pay 25% or 100% of value of freight , somewhere i read that it case of transportation receiver have to pay tax on 100% of value.
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