Service Tax on Freight Inward or Outward??

Our Pvt. Ltd. Company  provides service in Rainwater Harvesting  thru  appointed Franchisees.  

The company bills the Franchsiee=

1)  For Selling One Item + VAT Charges  ( just like trading) which is to be used in the execution of Rainwater Harvesting by Franchisee;    

(2)   Second Bill=  For Royalty for Patneted know-how of Rainwater Harvesting.

In this work, One Item / material (  without any change in form or  process after purchase,  i.e   as it is - in purchased form)     is used in the execution of work. 

The company pays  Freight Inward  to Transporter  for procuring or transporting of the purchased= the above Item, on which the transporter is NOT  charging Service Tax.

The Company has already taken Service Tax Regn for one class=Franchisee.

Query= Whether the Company is reqd to take one more Service tax  regn for   Goods Transport ? Under what class?

What  is the rate of Service Tax  applicable on this Freight Inwards?   10.3% on full Freight amount   or  on 25% of  Freight amount ??

If we have to pay Ser. tax @ 10.3% on Freight amount  or  on 25% of  Freight amount , can we take Input Credit benefit  against Ser. Tax Output Payable  on Franchisee class.

Thanks in advance to all my  Expert Friends.

 

Replies (1)

Not required to take another registeration

Service tax amount will be calculated on 25% value of freight inward @ 10.30%.

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