REGARDING SERVICE TAX
I WANT TO KNOW THAT SUPPOSE WE BROUGHT COAL FROM CO. AND WE HAVE DECIDED THAT WE WILL PAY SERVICE TAX ON TPT CHARGES , IF WE FOUND SHORTAGE OF COAL QTY THEN HOW WE WILL CALCULATE SERVICE TAX AND TDA . SHOULD WE WILL CALCULATE THE SERVICE TAX OR TDS ON THE EXACT AMOUNT OF BILITY OR WE WIL CALCULATE IT ON AFTER DEDUCTING THE AMOUNT OF SHORTAGE OF QTY. PLEASE LET ME KNOW I REALLY WAN TO KNOW THIS
FOR EX: THE QTY IS 28.810 & WE RECIEVE 29.300 AND THE AMT OF TPT CHARGES IS 2350 MT THEN THE TOTAL AMOUNT OF TPT IS 70053 BUT PAYABLE AMT. IS 68855 THEN HOW WE WILL CALCULATE THE SERVICE TAX & TDS. AND ON WHICH AMOUNT AND QTY.
You question is not very clear. What is TPT charges ? As far as I understood:-
Service tax is payable on service portion of the invoice if the bifurcation is clearly available. Hence while calculating service tax don't deduct the shortages. Further the summary of meaning as per act is as under:-
• Any activity
• For consideration
• Carried out by a person for another
“Service” does not include
• Any activity which merely constitutes a transfer in title of
o Goods or
o Immovable property by way of sale, gift or in any other manner.
I think by TPT you mean transport charges.
CA Manish Dalmia