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Whether to charge service tax or not?

Queries 390 views 2 replies

Hello friends...Please help me out on the following issue.

Right now i am doing audit of a cold storage service providing co. Sometimes this company pays to transporter for the transportation charges of their customer and then after they makes a  seperate invoice to recover the same from client. Now my question is whether the company should charge service tax in this bill for reimbursement or not...??

Waiting for your reply

Replies (2)

Dear,

 

your company is receiving services from transporter.......

.

and as per Reverse Charge Mechanism.. in case of service receved from Goods Transport Agency, Company is liable to pay service tax to government directly.

Since the Service Tax is charged on the gross value,freight charges should be included in the assessable value.


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