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Who will be liable for st payment

suman (Auditor ) (388 Points)

20 October 2011

WE HAVE IMPORTED SOME MACHINERY FROM USA . WE HAVE PAID LOCAL FRIGHT RS 5000 TO TRANSPORTER. NOW R WE LIABLE FOR PAYING SERVICE TAX ON SAID 5000 RS.

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 20 October 2011

Yes, payer of freight is liable to service tax. 75% abatement is available.

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suman (Auditor ) (388 Points)
Replied 20 October 2011

THAT MEANS WE HAVE TO PAY 10.3% OF 1250 RS ONLY. BUT SIR I WANT TO CLARIFY ONE MORE THING THAT IS WE ARE CLAIMING INPUT OF SERVICE TAX TOO WILL THAT MAKE ANY DIFFRENCE ?

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 20 October 2011

Correct. Fact that you are avaling cenvat credit for input services does not alter the position. Get a declaration from the GTA that he is not claimng cenvat credit.