mukesh (Article) (42 Points)
30 January 2013Dear All,
My Doubt is about Service Tax Liabiltity as we made purchase of packing material Rs 200000 and for Freight vendor has send us the LR copy as To Be Bill and Also send us Debit Note for Freight Exp.
As Vendor has paid the Freight on the Supply of Packing material and is asking for reimbursement of Freight exp.
whether we laibale to pay sevice tax as GTA service or not.
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 24 February 2013
In my view, the liability to pay service tax on GTA is on the person who is liable to pay the freight. In your case, you are the person liable to pay freight as ultimately the liability to pay freight is yours. The vender must have initially paid to the transporter to facilitate transporting and that payment was on your behalf.
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 24 February 2013
| Originally posted by : mukesh | ||
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Dear All, My Doubt is about Service Tax Liabiltity as we made purchase of packing material Rs 200000 and for Freight vendor has send us the LR copy as To Be Bill and Also send us Debit Note for Freight Exp. As Vendor has paid the Freight on the Supply of Packing material and is asking for reimbursement of Freight exp. whether we laibale to pay sevice tax as GTA service or not. |
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Manojji is correct. However youmay confirm from the vendor that he has not paid the ST. If he has paid then maybe you need not do so. If he has not then youmay pay the same.
CAclubindia
