reimbursement on transportation charges

[Sudhir Kumar]

A C&F agent having service tax registration has not paid the service tax on reimbursement charges received from the principal in lieu of providing them transportation facility. The contention of the agent was that the service tax was already paid by the principal however, they have not provided any proof of service tax payment made by the principal. Sir, whether the agent is liable to pay service tax on the value paid by the principal against providing them transportation facility.

AI Summary

Customs Agent Must Pay Service Tax on Transportation Reimbursement Unless Proven Otherwise by Principal A C&F agent sought clarification on service tax liability for transportation reimbursement charges received from a principal. The forum consensus indicates the agent is liable to pay service tax on these charges unless conclusive proof exists that the principal has already paid the tax. The agent bears the burden of demonstrating prior tax payment, and without such evidence, tax authorities can rightfully demand service tax from the agent to prevent potential double taxation.