DOES A PROPRIETORSHIP TRADING FIRM IN INDIA IS LIABLE TO PAY SERVICE TAX FOR THE FREIGHT PAID FOR?
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TRANSPORTATION OF GOODS BY ROAD? DETAILS: 1. WE HAD BEEN ASKED BY SERVICE TAX DEPARTMENT TO PAY SERVICE TAX FOR THE FREIGHT PAID IN A YEAR WHICH IS BEYOND RS. 1500 PER CONSIGNMENT AND TO GET REGISTERED UNDER SERVICE TAX ACT. 2. WE ARE NOT REGISTERED UNDER SERVICE TAX ACT TILL NOW. 3. WE ARE PAYING FREIGHT OF RS. 350000 PER YEAR ON AVERAGE TO THE TRANSPORTER FOR TRANSPORATION OF GOODS. 4. OUR FIRM IS IN TO TRADING OF FINISHED STEEL PRODUCTS ONLY. MY QUERY IS:- 1. DOES A PROPRIETORSHIP TRADING FIRM FALLS UNDER THE PURVIEW OF SERVICE TAX ACT. 2. IF YES, THEN IS THERE ANY LEVEL(SLAB) WHICH IF WE CROSS THEN WILL COME UNDER THE SERVICE TAX ACT PLEASE ADVICE :-)
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Answer:
If you are service provider then you should register yor firm with service tax dept. after crossing thresh hold limit and pay the service tax by availing abatement of Rs.750/- per bill.
Amit Jain at Yahoo! Answers Visit the source
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