Service tax on freight

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This query is : Resolved

sanish p balan (Querist)

02 July 2012 Sir,

If The Transporter pays the Service Tax,whether The Consignee/Consgner can Claim this payment????????

C.A Anshul Singhal

C.A Anshul Singhal (Expert)

02 July 2012 No, if service tax on freight pay by Tranportor than consignee/consignor can not claim this payment.

Message likes : 1 times

sanish p balan

sanish p balan (Querist)

02 July 2012 Thank You Sir.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

02 July 2012 If the transporter has paid the service tax, he must have recovered the same from the consignor/consignee by adding the service tax in his invoice/bill.

So for the consignor/consignee, the total expense will be the amount of freight and service tax thereon.

The consignor/consignee can also avail credit of the service tax provided the other conditions are fulfilled.

sanish p balan

sanish p balan (Querist)

02 July 2012 Sir Other Conditions means???????

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

03 July 2012 He is eligible to avail input credit. He is a service provider. The input service has been used for providing output service.

In short he must comply with the CENVAT Credit Rules, 2004.

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