Service Tax liability on SD invoice

[Former Member]

Hi Experts,

Our client is transporter providing goods transport agency services to its customer based in non-taxable territory ( J & K , Nepal , Bhutan other foreign nation ). As per service tax rule ( India ) if the recipient is located in non-taxable territory than transporter need to deposit the service tax at its end.

For example if the rates with the customers fixed @100 then my client need to deposit service tax @ 3.09% at his own pocket that is we need to pass a general entry at the time of SD invoice mention below : -

Customer Dr.           100

Service Tax Exp. Dr. 3.09

   To Freight Charge        Cr. 100

   To Service Tax Payable Cr.  3.09

Regards

Suresh Kumar

[siva_vasireddy2]

Hi,

Plz check if you can bring through condition supplement when the customers fixed @100 rate