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S.T. on excess freight received from purchaser than paid to transporter

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..... S.T. on excess freight received from purchaser than paid to transporter
Query (Issue) Started By: - mehta pradip Dated:- 3-5-2014 Last Reply Date:- 4-5-2014 Service Tax
Got 1 Reply
Service Tax
We are supplying over-head conductors to Electricity Boards against there order. As per Purchase Order, the Ex-Works prise and freight charges are mentioned separately. The freight charges per K .....

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..... ms are fixed irrespective of distance of destination within Gujarat. We mention the Ex-Works price and freight charges separately in our Excise Invoice. However, the actual freight charges paid by us to the transporter is some times higher and some times lower than mentioned the Purchase Order. Whenever, the amount mentioned in Purchase Order is more than the consignment note, the department is in .....

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..... sisting to pay service tax on the amount mentioned in purchase order and not on the amount mentioned in consignment note. Please advice your opinion in this matter. Reply By Madhukar N Hiregange: The Reply: The dept. is filled with over zealous officers out to either establish their nuisance value or get medals for the demands. They should be trained and periodic examination given as their lack .....

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..... of knowledge is causing havoc among those whose awareness is poor. They even say we are only doing our duty at times!!!! Under the Constitution of India - no tax shall be collected other than with authority of law. The dept officers are acting beyond law. Transportation is in negative list and not liable even if one were to charge 100 crores for the transportation. Only GTA or courier is liable. .....

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..... That also GTA at the rate of 12.36 percent of 25 percent by receiver. As long as you have paid that amount- they cannot demand.
Discussion Forum - Knowledge Sharing .....

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