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Service tax

Queries 259 views 5 replies

Sir,

If we charge Transportation Charge in Sale Invoice, and the same we received from our customer, but actually we paid to transporter less than we received from customer, Now my question is on which amount we pay service tax ( Received from customer or on actually paid to transporter), and who will pay service tax by customer or by us.

Kindly suggest.

Replies (5)

Customer has just reimbursed the charges paid by you.

Actual transaction is between you and Transporter. Service tax payment liability arises on you over the amount charged by transporter.

Thanks for your valuable reply, but whatever they reimburse it was more than we made actual payment, so where we adjust this excess amount, and second thing is @ what percentage I have to pay service tax.

Under RCM you are liable to pay 4.5% including cesses, with abatement.

What's about received excess reimbursement ?

Dear, actually its what you have received against reimbursement of transportation charges.

So, any excess money is to be repaid/credited to the party acc.

There is no guidance or rule for adjustment of such excess advace amount.

At last, any unadjusted such amount is credited to profit & loss Acc.


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