Service tax

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Prop.
69 Points Joined November 2010

Dear Friends,

My query is regarding service tax on Ocean freight

suppose one CHA agent  recevied ocean freight bill of Rs.10000/- and Now he make bill to client for Rs.12000 as a Ocean frieght charges . As ocean fright is exempt hence he is not charging  service tax  on Ocean freight bill of Rs.12000/-

Now Service tax Department is saying cleint have to pay Service tax on differential amount of Rs.2000/-(12000-10000).

Pl confirm service tax Department view is correct and we have to Pay service tax on differential amount.

 

 

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On 21 January 2013 at 15:29 Report
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Sr. Accountant
187 Points Joined January 2012

question not cleared.

to whom service tax demand from CHA or its Client.

 

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On 22 January 2013 at 17:14
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Prop.
69 Points Joined November 2010

Service tax Department asking  from CHA ز

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On 22 January 2013 at 17:39
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Sr. Accountant
187 Points Joined January 2012

Yes, CHA has to pay service tax on Rs.2000/- because ocean freight bill of Rs.10000/- and CHA make bill to client for Rs.12000.

it means Rs.10000/-  for Ocean Freight is reimbursement of exps. for CHA subject to produce receipt/bill of Ocean Freight.

But Rs.2000/- is income of CHA, so he has to pay service tax on it.

i hope this will clear your issue.

 


 

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On 23 January 2013 at 10:59


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