Service tax on freight in bill

Haresh (Executive - Secretarial Dept.)   (28 Points)

12 June 2017  
One of our vendors from Chennai has charged full service tax ( @ 14%++) on freight in bill. Whether we as purchaser of goods are liable to pay service tax charged on freight by vendor. As per vendor, the work of transporting goods or transportation is carried by their other company specifically formed for the purpose of transportation. In this regard, kindly note, right now, we are making payment to vendor only for transportation and not for service tax and vendor have not issued any consignment note also. You are requested to kindly advice.