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TMI BlogLiability of service tax - Proportionate amountX X X X Extracts X X X X X X X X Extracts X X X X ..... We are purchasing material from supplier named "A". For that material we have awarded work to transporter named "B". B does not have service tax registration number. In this case we liable to pay service tax ? . If we are liable to pay service tax than service tax shall be calculate on 100% amount of transportation or 25% (abatment) of transportation amount. - Reply By Vijay Chitte - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per your query, transorter having service tax registration or not,it is not relavant to you, Notification 35/2004-ST Dated 3rd December,2004 prescribed that the person making payment towards freight would be liable to pay servie tax, in case if you are fall under seven category of person. you may refer CBEC circular F.No. 341/18/2004-TRU(Pt.) Dated 17th December,2004. - Reply By CA Anurag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bansal - The Reply = Yes, As per Notification 35/2004-ST you have to get registered under service tax act and you are liable to pay service tax yourself if certain conditions as laid in said notification have fulfilled. Abatement shall be allowed only if tansporter has not taken cenvat credit in respect of inpur or capital goods. - Reply By Madhukar N Hiregange - The Reply = The first questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to be answered is whether B is a goods transport agent or a goods transport operator/ truck owner. If not GTA but a GTO in my view there is no liability on anybody. The FMs speech of 2004 maybe referred. Further a GTO may not issue a consignment note which may mean that he cannot be defined as a GTA. If he is a GTA then you are liable if you are not an individual or unregistered partnership fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m. If you are liable then you should obtain a declration from B that he does not avail any cenvat credit on capital goods, inputs or input servcies and no deduction under not.12/2003 is availed by him. Once you obtain the declration the 25% payment optin is available to you. ON the amount paid to him there is credit available if you are paying excise duty or servcie tax as a taxable servcies pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided. - Liability of service tax - Proportionate amount - Query Started By: - Vivek Pandya Dated:- 7-4-2007 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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