SERVICE TAX ON FREIGHT
This query is : Resolved
27 June 2008
I have hired a transporter to transport cement from the manufacturer's factory to my godown. The terms with the manufaturer is that I take delivery Ex-factory and his responsibility ceases once the material leaves his factory. The transporter charged service tax on his bills for freight which we honoured.
Now, the question is:
Will there be a liability on us on the service tax amount paid by us to the transporter as some of my friends feel we should not reimburse service tax on freight.
Kindly clear my query and please clarify the applicability of service tax in this scenario?
Now, the question is:
Will there be a liability on us on the service tax amount paid by us to the transporter as some of my friends feel we should not reimburse service tax on freight.
Kindly clear my query and please clarify the applicability of service tax in this scenario?
Shyam Lal Naik
(Expert)
10 June 2010
The consignor and consignee are the same person, ie. you, in this case.
Assuming that you are a proprietorship firm, the service tax liability is in the Transport Agency.
Hence the payment of service tax to the agency is in order.
Assuming that you are a proprietorship firm, the service tax liability is in the Transport Agency.
Hence the payment of service tax to the agency is in order.
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