Gta
This query is : Resolved
27 July 2013
We are manufacturer and procuring raw material from inland as well as doing import. Sometimes our local supplier charge freight amount in bill. Please confirm who will pay the service tax on freight amount we or the supplier? Also confirm that on import we are paying the freight charges also. Did we need to pay the service tax on that or not?
27 July 2013
the constitution of your business is not clear by your quary, as you being a 'service receiver' would be liable only in case where reverse charge is applicable.
further, this is assumed that reverse charge is applicable in your case, so as per ruling of service tax, person who pays the freight is also would be liable to deposit the service tax.
(i) in your local procurement, you are liable to deposit service tax on the freight amount paid. actually the supplier is receiving reimbursement of freight from you, hence you are the party who ultimately paying the freight. however this is advisable to ask the vendor whether he has deposited the service tax on that particular freight and claiming the inclusing service tax amount in the bill or only freight? in case he deposited already, you need not to deposit, and this is better to keep a copy of challan of deposit.
(ii) on import freight also, you would be simultaneously liable to deposit the service tax.
further, this is assumed that reverse charge is applicable in your case, so as per ruling of service tax, person who pays the freight is also would be liable to deposit the service tax.
(i) in your local procurement, you are liable to deposit service tax on the freight amount paid. actually the supplier is receiving reimbursement of freight from you, hence you are the party who ultimately paying the freight. however this is advisable to ask the vendor whether he has deposited the service tax on that particular freight and claiming the inclusing service tax amount in the bill or only freight? in case he deposited already, you need not to deposit, and this is better to keep a copy of challan of deposit.
(ii) on import freight also, you would be simultaneously liable to deposit the service tax.
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