SERVICE TAX ON FREIGHT CHARGES
This query is : Resolved
P.S.VISHWANATHAN
(Querist)
07 May 2010
THE SERVICE TAX ON FREIGHT CHARGES IS TO BE DISCHARGED BY THE PARTY THAT PAYS THE FREIGHT. IN ONE INSTANCE WE HAD SUPPLIED MATERIALS FOR EQUIPMENT UNDER WARRANTY DIRECTLY FROM A SUB CONTRACTOR TO OUR CUSTOMER. SINCE THE SUPPLY WAS UNDER WARRANTY, THE FREIGHT CHARGES WERE PAID THE CUSTOMER AND THE SAME WAS DEBITED TO OUR ACCOUNT. THE CUSTOMER HAS RAISED A BILL FOR THE FREIGHT AMOUNT DULY CHARGING SERVICE TAX THEREOF. THE QUESTION IS SINCE THE FREIGHT CHARGES ARE ULTIMATELY BORNE BY US , ARE WE SUPPOSED TO PAY SERVICE TAX?
Shyam Lal Naik
(Expert)
10 May 2010
In my view, since the person liable to pay freight to the GTA is liable to discharge Service Tax, the service tax shall be discharged by your customer.
However, depending on the contractual arrangement, the customer can recover the amount from you.
However, depending on the contractual arrangement, the customer can recover the amount from you.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
