Service tax. plz help

Clear few things in your query. Whether at any point service tax was imposed on the said expense? On whose name the invoices for expenses are raised? Are there any non resident company involved in the transaction.

Dear Sir,

                 Shiping Co. is not charging Service tax on Ocean Freight as that is exempt from service tax.  The invoice is in the name of logistic co. ( that is who is charging higher amount of ocean freight from the client. No non resident co. is involved.

But the doubt is weather service tax is applicable on that difference amount.?

and ya... shipping co. is charging service tax on other charges like Documentation Fee, Handling Charges etc.

Now as per your words, when the shipping company is raising invoice on the client they are not charging service tax and raising invoice upon the client who are reimbursing the same from the customers at a mark up. There is no service tax on mark up per se, but as the client who is a CHA (assumed), he will be liable to service tax on the entire value as he cannot substantiate the amount of expenditure actually incurred by him. In the present case entire value of the bill will be considered as the value of service and will be liable to service tax.

Shipping Co. raises bill for freight to the freight forwarding company at Rs. 100 in the name of that freight forwarding co.

 

Then after that freight forwarding co. is raising invoice to its client at Rs. 150

 

Then What will be the implication ???

Thanks Friends for giving ur Valuable time & reply