service tax in freight income

question is not clear

FACTS: A Ltd, Recieves Rs.1.00 lacs for freight plus service tax from its customers for making delivery of its produsts. A Ltd also pays frieght of Rs.1.50 lacs to transpoter for delivery ofthe above mentioned product to the customer. Whether it is allowable to pay service tax on net off amount .i.e., (Rs.1.5 - Rs.1.00) Lacs? Waiting for your prompt response.

FACTS: A Ltd, Recieves Rs.1.00 lacs for freight plus service tax from its customers for making delivery of its produsts. A Ltd also pays frieght of Rs.1.50 lacs to transpoter for delivery ofthe above mentioned product to the customer. Whether it is allowable to pay service tax on net off amount .i.e., (Rs.1.5 - Rs.1.00) Lacs? Waiting for your prompt response.

I my opinion you cant net off the amount. Furtheras the example suggets , i feel you A ltd being service provider should take registrtion and avail Input credits for the ST paid to Transporters

s

Unless, Company registered it as service provider it cant collect service tax from customers nor customer cant take credit