Service tax on transportation arrangement

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This query is : Resolved

chandru (Querist)

20 January 2016 Kindly advise me regarding the applicability of the Service Tax on Outward Transportation.

Suppose. The scenario as follows : i am selling a product to customer for that i make an arrangement of transportation & unloading services to the destination through some contractor. But i am not showing it separately in the invoice raised to the customer and i am collecting VAT on full basic amount ( which includes these transportation and unloading charges also ).

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 January 2016 If you are engaging a GTA you are liable to pay service tax under RCM.

chandru

chandru (Querist)

20 January 2016 No, sir
here we are three parties 1. Seller(me) 2.Buyer(my client) 3. transporter(GTA)..

in this case i am selling goods to my client by arranging transporter(gta) and paying freight along with service tax as carriage outwards.

but the query is whether i should charge any amount to my client for arranging the GTA while invoicing for my sale...?
and is it k if i am invoicing for single value of sale of goods without any charges and ST?

chandru

chandru (Querist)

20 January 2016 And what will be the case if i collecting(reimbursing) the same freight from my client...? should i pay any ST/VAT on that freight.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 January 2016 It is okay you can charge single value sale of goods.
In case of reimbursement of freight no ST payable treating it as pure agent.

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