Hello,
Can any advise me what is the procedure of calculating the service tax for freight( being paid to transporter). What is the percentage to calculatethe service tax and as well on which amount one should calculate the service tax?
Ansari..
Hello,
Can any advise me what is the procedure of calculating the service tax for freight( being paid to transporter). What is the percentage to calculatethe service tax and as well on which amount one should calculate the service tax?
Ansari..
Tranporter is liable to pay service tax only in exceptional cases. Otherwise, payer opf freight is liable to tax. Tax is 10.3% on the 25% of freight amont.
Agree with above. Only where the payer of freight is not covered by Rule 2(1)(d)(v) of Service Tax Rules, 1994, viz., individual Excise manufacturer/unorganised sectors, etc. 75% abatement is applicable, hence tax is to be paid through PLA (without utilising Cenvat credit) on 25% of freight amount paid.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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