TaxTMI 
TaxTMI 
Liability of service tax - Proportionate amount
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....iability of service tax - Proportionate amount<br> Query (Issue) Started By: - Vivek Pandya Dated:- 7-4-2007 Last Reply Date:- 12-4-2007 Service Tax<br>Got 3 Replies<br>Service Tax<br>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 w....
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....e 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: 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 t....
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....o 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 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. Abatem....
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....ent 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 question 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....
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.... 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 firm. 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 t....
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....he 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 provided.<br> Discussion Forum - Knowledge Sharing ....