Hi,
I want to know about the RCM on Goods transport agency..
We are a manufacturing Company and we are using a guy who is an outsider having a van. We normally send the Goods from the factory to the Freight agent to send it to our supplier as well as our headoffice. This guy will act as a transporter in between our company and the freight agent. Whether we have to pay service tax on RCM on this transaction. and alos note that he is not register under GTA.
If Yes, He is charging us for each trip he is undertaking. But the bill we received from him weekly mentioning each trip separately with the date and place. ( Each trip rarely come to Rs.750, Rs.900, Rs.1500 etc ). The total bill for a week ( including the trips in a week ) must come to Rs.8000 to Rs.9000. In this case what is my exemption and in what amount i have to deduct Service tax based on RCM. Whether i have to see Trip wise or Bill wise?..Please confirm.
Regards
raghu
CAclubindia
