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TMI BlogTransport ChargesX X X X Extracts X X X X X X X X Extracts X X X X ..... Transport Charges X X X X Extracts X X X X X X X X Extracts X X X X ..... e charge on ₹ 100000 under Business Auxiliary Services or Not.Confusion 2. Whether Service tax would be charge on ₹ 55000.00 under GTA or not.Confusion 3. If we pay Service Tax on both i.e. ST on ₹ 100000 under Business Auxiliary Service and ST on ₹ 55000 under GTA (Reverse Charge) then it would be double taxation. Whether it is right or not. Reply By Rajagopalan Ranganatha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n: The Reply: Sir, If Transport charges of ₹ 55000/- is paid by you then under reverse charge mechanism as a consignor you are liable to pay the service tax but you cannot avail the credit of service tax paid by since it cannot be treated as input service for you. It is input service only to your consignee. It is the normal practice of excise assessees to despatch the excisable good to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consignee on 'TO PAY' basis. If you indicate ₹ 1,00,000/- as freight in your invoice then it will be treated as transport charges charged by you and you have to pay service tax only on that amount. The Department is not concerned what you have actually paid to the Transporter for levy of service tax. However, for excise valuation purpose the difference between ₹ 1,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ₹ 55,000/- will be treated as part of your transaction value and excise duty will be demanded by the Department on the differential amount.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Thanks for nice explanation, Shri Rajagopalan, Sir
Reply By MUKUND THAKKAR:
The Reply:
Agree with the Rajagopalan Ranganathan. X X X X Extracts X X X X X X X X Extracts X X X X
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