Service tax
n v sudhakar
(Querist) 02 July 2012
This query is : Open
Ours is goods transpot agency and we are paying service tax by availaing 75% abatement.
Our business is packing, loading, transportation, unloading and unpacking.
Since our service includes packing, we buy packing material (by paying 14.5% VAT). Our charges to the client includes packing material. We do not charge separately for packing material.
At times there will be some damages to the goods while in transit due to various reasons. We pay the damages cost to the client called claims expenses.
For arriving the value of taxable services we are excluding the above elements i.e, packing material cost and claims expenses.
Whether the above stand taken by us is as per law? Please suggest.
Regards
N V Sudhakar
