Need urgent help on do i have to pay service tax or not in this scenario?
aadityaaggarwal
(Querist) 01 January 2015
This query is : Resolved
Dear sir,
I am owner of a commercial pickup vehicle which i use to provide transportation services of letters,parcels of courier from point A to point B(300 km apart) to two major courier companies who have hired my vehicle on contract basis for movement of their load to different stations between point A and point B(i am only giving the courier load to the franchise in different towns not delivering them personally to the final customer). My question is regarding the determination of my tax liability.
NOTE : I am not running a goods transport agency(which deals with various clients and issues consignment note).
If both courier company pay me a total amount of Rs 1,30,000 per month to carry out transportation of load(letter,parcels and other courier material) and my expenses amount to Rs 1 lakh(including fuel expenses,driver salary,barrier toll tax etc) and my monthly income becomes Rs 30,000, than -
1. Am i liable to pay any service tax on my service provided to the courier company or should the courier company pay it(i read something about reverse service tax mechanism) as i am only a small service provider and they are a big company.
2. IF no service tax is payable by me, do i have to pay income tax to government on income of rs 30,000 per month.
If any detail or required information is missing kindly reply and ask for it. Help will be appreciated.
Thanking you
Aaditya aggarwal
Guest
(Expert) 01 January 2015
Better Discuss it With Ca Club of this Forum Or Meet A Local Good Chartered Accountant who would be helpful for you Not Only in This Even For Long Run.Do not be carried away by People who are Jack of All Trades.
V R SHROFF
(Expert) 01 January 2015
talk to your Tax consultant
ajay sethi
(Expert) 01 January 2015
raise query in CA clubindia.com
T. Kalaiselvan, Advocate
(Expert) 03 January 2015
Yes, a local tax consultant will be in a better position to explain you the details sought for by you.
Vineet
(Expert) 04 January 2015
Service tax on goods transport service is payable on reverse charge mechamism, i.e. The courier agency need to pay it and not you. If you provide your PAN to courier agency, they are not required to deduct any TDS.
Reg Income tax, since you own less than 10 vehicles, you are liable to pay tax on incom the computed on prsumtive basis u/s 44AD. This is much less than you earn. You may chose to offer more income by calculating your real income as per IT Act.
