cash a/c..........Dr
To sales a/c
To delivery charges a/c
we got to pay service tax on that delivery charges collected right
now the quest is , if the same sales get return as below
sales return a/c...........Dr
delivery charges a/c.....Dr
To casha/c
then should we pay service tax on delivery charges????
Hey kaya, do u mean transportation charges?
Hi Kaya.
I think yes, you have to service tax.
Service tax is charged by Goods Transport Agency in relation to transport of goods. ( whether it is sale of goods or returned goods as it is irrelevent for them)
Service tax is payable if the Goods Transport Agency issues consignment note.
And Service tax is payable by the Consignor or consignee who is paying frieght charges.
Please correct me if i'm wrong.
CAclubindia
