Kindly enlight me regarding the applicability of the Service Tax on Outward Transportation. Suppose. The scenario as follows :
i am selling a product to customer for that i make an arrangement of transportation & unloading services to the destination through some contractor. But i am not showing it seperately in the invoice raised to the customer and i am collecting VAT on full basic amount ( which includes these transportation and unloading charges also ).
Whether this outward transportation will attract a service tax ( for both individul or corporate body ) ?? what will be my liability if the contractor does not raise service tax on his bill ? Do i have to pay service tax on this to government and deduct the same from the contractor or any excemption is availabe for this as per the law ?
Kindly clarify the same !!!
CAclubindia
