sir
we are a Proprietory firm engaged in maufactring of Exiseable Goods and are registered under Factory Act , we supply material to our coustomers located near by and the order issued to us in on the condition of FOR works of our coustomer , we are paying freight of Rs 400 per trip to our Tempo person who is an individual ,
what will be the servise tax liability , Who will bear the servise tax and at waht rate. please provide us details regarding the same.
thanks in advance.
amit
Sir,
As per reverse charge mechanism you are a person liable to pay service tax as per notification no 30/2012 ST.
But as per notification no 25/2012 ST, - Exemption is given to-
21. Services provided by a goods transport agency by way of transportation of -
(a) fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;
(b) goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or
(c) goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;
in your case, as you are paying Rs. 400 per consignment, you are not liable to pay service tax.
sir
thanks for the prompt reply , but will our being a Factory , registered under the factory act make any confusion.
regards
CAclubindia
