Service tax. plz help

For the year 2011-12 one logistic co. was charging ocean freight to its client higher than the amount actually paid as expense. now my ques is weather the service tax is applicable for that difference amount.

Eg:

Expense of actual ocean freight  Rs. 100

Freight Charge to the client Rs. 150

Difference Rs. 50

Now ques is weather service tax is applicable on Rs. 50?

reply with related provision mentioning here...

Replies (6)

higher than the amount actually paid as expense- meaning that you are not paying the extra 50

Ya dear... that is margin/service charge of that logistic co.

if it included in invoice than services tax will payle on gross

co. is raising the invoice for Rs. 150. then at  what amount service tax is leviable ( 50 or 150 ) and at what rate?

Dear Sourabh

You have to pay service tax on Rs. 150/- as you are nota pure agent here.

Thanks Friends for giving ur Valuable time & reply

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