Deal Collegues,
I would like to have clarity on Service Tax on transport contracts on the following points.
1. The Contractor has entered into a contract for unloading coal from railway siding and deliver by Road Transportaion of the coal at the customer factory. Is Transport contactor liable to pay service Tax or the the company receiving the service, has to pay service Tax?
2. The customer has sub-contracted the same to another transport contractor. In such a case the sub contactor has to pay service Tax ot the contractor has to pay the service Tax?,( keeping in view the receiver of service has to pay service tax)
3. For Transportation of goods there is abattement of of 75% of the value. Hence Service Tax is to be paid only on 25% of the value @ 10.3% .is it correct?.
An early sharing of openion is appreciated.
Thanks,
KVS Rao
CAclubindia
