Dear Experts,
Kindly give your's advice on following issue.
An goods were purchased by our company.
Transport billty amount is Rs. 30000.
Rs. 12000 paid by the Seller Company and balance Rs. 18000 paid by the usto transporter.
Now the question is under Reverse charge at what amount we have to pay service tax on cartage?
@ Rs. 18000 which we paid
OR
@ Full Amount Rs. 30000
Kindly advice.....
Thanks,
IF you have paid 18000 to Vendor and 12000 paid to transporter, ulternatevly you have paid 30000 pertaining to freight, then S tax liability will be 12.36 % of 7500 (25% of 30000) 927.00
If you have paid only 12000 as freight then (12.36% of 3000) 371.00
Thanks
In case of GTA, the service tax liability is on the person legally liable to pay freight. Normally, the consignor pay advance to the transporter on behalf of the consignee which is finally reimbursed. If this is the case, you have to pay service tax on 30,000/- @ 3.09%.
Thanks Sir for your valuable response...
We have paid only Rs. 18000, Balance Rs. 12000 is paid by Seller Company and we have not paid tthem Rs. 12000.
Now Pls Suggust on what amount is our liability?
Thanks,
CAclubindia
