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Thers is a Trading firm dealing in Chemicals. There is an agreement with our custmer that regarding freight Charges. where by we will pay the freight charges to transporter and then our customer will pay us the the fright charges @ Rs 5/kg of material dispatched, Irrespctive of the actual cost paid by us. We raise a Debitnote on our customer @ Rs5/kg.
Now the customer is deducting TDS @ 2%on the Debit note. and not paying the Service tax of 2.575% (service tax under GTA)
Do we need to charge CST/VAT on Debit note raised Towards Transportation charges at Fixed Contracted price(irrespective of Actul incurred by us)??
Request you all to please let me its right practice? it would be helpful if you can relate to some Section of the Act.
Rgds
Rachit |
