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.
CAclubindia
