Just wanted to check if Service Tax is applicable in the following case:
1. We are a Logistics Company supplying Dry and Frozen Items to Restaurants
2. We have a distributor in Gujarat who accumulates the Dry and Frozen Items on behalf of us to supply to our customers in Gujarat
3. The distributor has a cold storage wherein he stores our material on receipt on our behalf until the supply has to be made to the restaurants. Supplies is made once we raise an Invoice in our books and send it to them for supply.
4. We pay him a fixed rent or percentage of sales whichever is higher on a month on month basis.
Please advise
CAclubindia
