Service tax on freight

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This query is : Resolved

uma shankar khatri (Querist)

26 July 2013 1. freight and cartage are same or different? 2.Above what amount of freight/ cartage, service tax is payable ? 3.If freight is not paid to a trasport company BUT paid to a vehicle owner, then service tax is applicable or Not ? In that case should we have to take some declaration from the vehicle owner ? 4.Trasporter is having service tax number BUT do not mention on Builty/ GR / Receipt that the charges are inclusive of service tax or does not mention that Who is liable to pay service tax then WHO will be liable ?

Guest

Guest (Expert)

26 July 2013 1. Freight and cartage are synonymous terms.
2. Service tax payable on freight paid above Rs. 750/-
3. Even if freight paid to owner of vehicle service tax under reverse charge mechanism applicable as per service tax laws.
4. In the last case the person liable to pay freight shall be liable to pay service tax under reverse charge mechanism. IN other case the transport company shall be liable to pay service tax.

RENGARAJ R.K

RENGARAJ R.K (Expert)

26 July 2013 Even though the transporters are having service tax registration number, after the negative list the onus of service tax remittance lies 100% with the service receiver. If the transporter is a company, few such transporters are collecting the service tax.

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