Dear All,
Greeting,
Kindly give your valuable opinion on the following issue:
A proprietorship firm, say X, sales material from his place to respective buyers(usually companies) in which he incurs transporting charges. The transporter raise the bill in the name of the X on which X deposits the service tax on reverse charge mechanism. Now, X has to reimburse this transporting charges along with some profit from his respective buyers i.e. suppose he received transporting bill of Rs. 100.00 from the transporter, he reimburses Rs. 105.00 from the buyers.
My query is,
1. What is the best possible way to give effect to the above transaction whether he should raise transporting bill on the buyer(although he is not a transporter) or should raise debit note or any other way?
2. What will be the impact of service tax in the above transaction under both the circumstances or in any other circumstances, if any?
Regards,
CA Milan Agrawal
+919778459609
CAclubindia
