22 April 2009
SIR, WE HAVE PURCHASED MATERIAL FROM OUTSIDE THE STATE & FREIGHT FOR THE SAME IS RS. 5000/-. SERVICE TAX IS NOT CHARGED ON THE SAME BY TRANSPORT OR CONSIGNOR . WHETHER WE SHOULD CHARGE THE SERVICE TAX ON SAME OR NOT. IF YES THEN AT WHAT RATE.
22 April 2009
As per rule 2(1)(d)(v) of Service Tax Rules, Consignor or consignee who is paying freight will be liable to pay service tax, if consignor or consignee is any one of the following –
any factory registered under or governed by the Factories Act, 1948 (63 of 1948)
any company established by or under the Companies Act, 1956 (1 of 1956)
any corporation established by or under any law
any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India
any co-operative society established by or under any law
any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder
any body corporate established, or a partnership firm registered, by or under any law
If you fall in any one of the above category of persons and is paying freight , then service tax is payable and in this case GTA is absolved from the liability as it is to be paid by the person paying freight.
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