Service Tax
As per Notification No. 35/2004-Service Tax, dated 3rd December, 2004, the person making payment towards freight would be liable to pay service tax, in case the consignor or consignee of the goods transported is one of the following,
- Factory registered under or governed by the Factories Act;
- Company established by or under the Companies Act;
- Corporation established by or under any law;
- Society registered under Society Registration Act or similar law;
- Co-operative societies registered by or under any law;
- Dealer of excisable goods, registered under the Central Excise Law; or,
- Any body corporate established, or a partnership firm registered, by or under any law.
In this backdrop, who is liable to pay service tax in the following case?
Mr. A, who is an individual dealing in cloth business, have sent to M/s. Tamilan Private Limited cloth through a GTA. In this case, Mr. A is going to pay freight of50000 as per purchase order placed by M/s. Tamilan Private Limited (FOR price). Now who is liable to pay service tax? Whether Mr. A or M/s. Tamilan Private Limited?
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