Freight paid to gta, then got reimburssed


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Querist : Anonymous

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Querist : Anonymous (Querist)
12 January 2014 Dear Expert,

We are paying freight charges to GTA and the same is charged to our sale invoice seperately and collect from purchaser.

My quarry is whether Service tax @12.36% on 25% value of Freight should be payable by us or not?

Pl. clarify me.

12 January 2014 Hi

You will be required to pay ST while you incur freight charges, however when you invoice the same to your customer no ST to be paid on It.

Thanks


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