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Service tax on transport charges

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This query is : Resolved

Gaurish Puranik (Querist)
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24 January 2013 As per the GTA service, Service Tax should be paid by service receiver on Transport charges paid as a reverse charge mechanism.
Query:
If for purchase of Material VAT is paid on Transport charges then should we have to pay again Service TAx on the same as a reverse charge mechanism ???

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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24 January 2013 As you are paying the freight you have to pay service tax on transportation charges as per the reverse charge mechanism. Even if you are paying VAT on the same you have to pay Service tax on transportation cost.
The above rule is applicable only if you are making direct payment to GTA. If you are making payment of transportation cost to Creditor against material purchase then you would not be liable to pay service tax.

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