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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2015 Private Limited Company is engaged in trading of textile garments, retail sales by having showrooms. It pays freight charges for goods received. In this case any, service tax will arise? If so, who will bear? Is there any monetary limit for freight paid to come within the purview of Service tax?The company has not registered with service tax authorities. Kindly let me know the details with procedure to follow.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 December 2015 1 Bering a company service tax liability under RCM arises on freight payment.
2 Company has to bear the service tax.
3 No service tax payable, if your freight charges for full truck not to exceed Rs 1500 and in case of multiple consignments your freight charges not to exceed Rs 750.
4 Register with service tax authorities and pay service tax.
5 On line service tax registration can be done through ACES site, procedure for registration clear instruction available in the site.

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