Hi all,
i wanted to whether we can claim ST credit on payments made to the transporters...and also can we claim refund of such tax paid? also tell if TDS is applicable on such payments made to the transporters, if yes under which section????
Abhilash.T (Article Assistant) (61 Points)
22 December 2008Hi all,
i wanted to whether we can claim ST credit on payments made to the transporters...and also can we claim refund of such tax paid? also tell if TDS is applicable on such payments made to the transporters, if yes under which section????
Ritesh
(CA Final)
(326 Points)
Replied 23 December 2008
Yes TDS is applicable on such payments made to Transporters under Sec 194C(payment to Contractors) subject to few exceptions.(Please refer Sec. 194C of Income Tax Act)
.What sort of Services are you receiving from Transporters? Carriage of Goods, I guess....
In such scenario,such services are covered under GTA(Goods Transport Operator). First you will have to check as to whose liability it is to Receive Service Tax. Because in case Freight is paid by any of the Specified Persons(Specified Persons includes Company, partnership Firm nd few others, but doesn't include Individual, HUF), then it is the Liability of Person paying Freight, i.e, Service Receiver to collect & Deposit Service Tax.It is an exception to Normal Service Tax practice
I assume in your case Service Receiver is not a Specified Persons, Hence Liability Of Transport operator to collect Service Tax.
If my assumption is correct then Yes you can take credit ,provided you are utilising such Services in providing Taxable Services/manufacturing Taxable Final Products. I am not so sure of Refund....
But please first check as to whose liability it is to collect Service Tax....
CAclubindia
