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CA. Mala Rohara (Querist)

18 April 2009 Who is liable to pay service tax on freight?
Is it make any difference if freight is paid by consignee on behalf of consignor?
Is it make any difference , if freight is not shown seperately in invoice?

Dayal

Dayal (Expert)

18 April 2009 As per rule 2(1)(d)(v) of Service Tax Rules, Consignor or consignee who is paying freight will be liable to pay service tax, if consignor or consignee is any one of the following –

any factory registered under or governed by the Factories Act, 1948 (63 of 1948)

any company established by or under the Companies Act, 1956 (1 of 1956)

any corporation established by or under any law

any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India

any co-operative society established by or under any law

any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder

any body corporate established, or a partnership firm registered, by or under any law

The person paying freight is important

To show or not to show on the invoice is not the requisite condition

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