Service tax

Querist : Anonymous (Querist) 04 September 2011 This query is : Resolved
R/S,
one proprietor ship firm renders transportation service to private limited company in this financial year amounting to Rs.15 Lacs, without service tax.
Private limited made payment after tax deduction.
My question is that if he is not charging service tax, will effect us by department.

Follow Query

Report Abuse

Raj Kumar Makkad (Expert) 04 September 2011
It is the duty of the service provider to make payment after deducting TDS but if it is ignoring this duty then it is also your duty to remind him s ultimately you have to be charged with service tax.

R.Ramachandran (Expert) 04 September 2011
It will definitely affect you.
The provisions in regard to payment of service tax in respect of transport of goods by Road Service is as under:

Where the consignor or consignee of goods is a 'Specified person', then the person liable for paying service tax is 'any person who pays or is liable to pay freight'.

You being a Private Limited Company, falls under the category of "specified person."

Therefore either the consignor or you the consignee are liable to pay the service tax.

The Goods Transport Agency (in this case the proprietorship firm) has to issue a consignment note and invoice to the consignor clearly indicating the value of the service rendered by it. On the basis of the said consignment note, it is for the consignor or the consignee to pay the service tax.

prabhakar singh (Expert) 04 September 2011
excellently explained.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries