Clarification needed on service tax towards freight charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 Sir;

We are adding freight charges on the invoice, separately.

Our party pays the entire amount including that of the freight charges.

Would like to know; who is responsible to pay the service tax on freight charges; me or my party?

Pl clarify

@VaibhavJ

@VaibhavJ (Expert)
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27 December 2013 Hi

When supplier shows freight amount in raw material invoice. There is no need to pay service on such freight amount.

Thanks//VaibhaJ

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@VaibhavJ

@VaibhavJ (Expert)
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27 December 2013 you may also refer:

www.business-standard.com/article/opinion/vivek-mishra-reimbursement-of-transportation-charges-a-peculiar-situation-113021700474_1.html

Thanks

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Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2013 Thanks Mr.Vaibhav. The freight charges are added at the last; after calculating the E.D & CST. Hope even then the service tax will not be applicable?

Annu Agarwal

Annu Agarwal (Expert)
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28 December 2013 If the goods are transported by the seller using his own transport then there is no service tax liability.But if he is using the service of GTA ,the person responsible for paying freight shall be the one liable to pay service tax.

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