Transporter bill

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2011 Dear Experts,
A mfg. ltd Co (listed) , pays to the transporter for carriage of goods. On the transporters consignment note the transporter mentions that the service tax will be payable by the consignee. So whose liability is it to pay service tax, as the transporter does not shows service tax on its bill separately, and the consignee is least bothered to pay the same. And if payable by the Co., then what will be the rate of service tax.

Thnx in advance

CA Rohit Gupta

CA Rohit Gupta (Expert)

13 May 2011 In the transprtr bill itself amout of service tsx to b paid by d consignee is to be mentioned. Else it can also be calculated at amount of bill x 10.3% x 25% (since der is 75% abatement)

Nayan Das

Nayan Das (Expert)

13 May 2011 calculated at amount of bill X 25% X10.3% (since der is 75% abatement)

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2011 Thnx for the reply.

But it is not clear if the Co. objects to pay the service tax.In such as a case who is liable to pay service tax

U S Sharma

U S Sharma (Expert)

15 May 2011 today or tomorrow department will visit the company and at that point, company will be compelled to pay, as its standing liability as per rules in force,

by that time interest and penalty would get a reasonable shape, which may be avoided by payment in time and compliance with smile.

persons who are unware of indirect tax department vist, don't bother to look these matters, but when it comes to face, they have no escape but to settle it with 1st priority.

prevention is better than cure always.

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