GOODS TRANSPORT AGENCY

[RAVI SONI]

M/S XYZand CO. is a Partnership Firm who is registered in Service Tax Department under “ Goods Transport Agency ” as a Service Receiver the firm has taken a transport service from M/S DEFand Co. which is also a Partnership Firm. As per the instruction of M/S XYZand Co. M/S DEFand Co. is supposed to deliver goods to M/S ABC LTD. for which M/S DEFand Co. will charge ₹ 20000/- from M/S XYZand CO. M/S XYZand CO. will charge ₹ 30000/- from M/S ABC LTD. as a transportation charges, in this case I want to know whether M/S XYZand CO. will pay Service Tax on ₹ 20000/- or else on ₹ 30000/- with proper logic.

[Samik Chaudhuri]

Mr.Soni

As per my view M/S XYZand CO will have to pay on 30000/- but it will take credit on 20000 /- against M/S DEF and Co Bill so ultimately M/S XYZand CO will have to pay only on rest 10000/-.

With thanks

Samik Chaudhuri.

[PAWAN KUMAR]

Dear Sir,

As per my view, M/s.XYZ has to pay the service tax on ₹ 20000 paid to company M/s.DEF. However ₹ 10000 which additionally taken from the M/s.ABC will also liable for service tax.

AI Summary

Service Tax Dilemma: Should Tax Be Paid on 20,000 or 30,000? Exploring Tax Credit Options for Transport Services. A partnership firm, M/S XYZand CO., registered under the Service Tax Department as a Goods Transport Agency, engaged M/S DEFand Co. for transport services to deliver goods to M/S ABC LTD. M/S DEFand Co. charges M/S XYZand CO. 20,000, while M/S XYZand CO. charges M/S ABC LTD. 30,000. There is a query about whether service tax should be paid on 20,000 or 30,000. One response suggests paying tax on 30,000 with a credit on 20,000, while another suggests paying tax on both amounts, totaling the additional 10,000.