who's lability to pay service tax on Transporters Freight???

This query is : Resolved

Prashant (Querist)
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14 November 2008 If a Transporter Charged Freight (Not incl. Service Tax)
Half of the amount is to pay and half is paid by Supplier.
Then Who's Lability to pay Service Tax &??
a. Supplier
b. Transporter
c. Customer
Who will be Deduct TDS???
a. Supplier
b. Customer

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 November 2008 Looks to me as hypothetical. How can the transporter agree for half half? Who engages him is the person to whom service is provided.

CA. C V SURYAM

CA. C V SURYAM (Expert)
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14 November 2008 Hallo, financial arrangement is between the parties and it no way connected to service tax liability. As per reverse charge mechanism, under GTA service category, the recepient of consignment is liable to discharge the service tax. Regading TDS, the payer has to deduct.

CA. C V SURYAM

CA. C V SURYAM (Expert)
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Prashant

Prashant (Querist)
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14 November 2008 It means Supplier Deducted TDS on Rs. 20000/- & Customer Duducted TDS on Rs.20000/- and no liability of Service Tax???

Prashant

Prashant (Querist)
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14 November 2008 It means Supplier Deducted TDS on Rs. 20000/- & Customer Duducted TDS on Rs.20000/- and no liability of Service Tax???

Ram Avtar Singh

Ram Avtar Singh (Expert)
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14 November 2008 TDs & Servicetax both liability of payer

Prashant

Prashant (Querist)
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15 November 2008 It means Supllier pay on 20000/- & Customer on 20000/-???????

Pooja Chopda

Pooja Chopda (Expert)
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15 November 2008 1st we will have to see who responsible to pay the transporter for his services...for eg, for whether it FOB contract or CIF.

Therefore the supplier or the customer as the case may be will be will be responsible to deduct service tax from the payment & TDS from the payment/credit whichever is earlier. & deposit within due date.

In case the transporter gets a certificate from the respective deptt/officer..regarding any exemption/lower rates...things will move accordingly

Ravikumar.G

Ravikumar.G (Expert)
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17 November 2008 In GTA either consigner or consignee, Transporters are liable to pay ST. The financial arrangements between the suppliers, customers and transports should not be violated the law and provisions.

Ravikumar.G

Ravikumar.G (Expert)
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17 November 2008 TDS is applicable - who incurred the service and who rendered the service.

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