Service tax on transportation arrangement

This query is : Resolved

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

chandru

chandru (Querist)
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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)
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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)
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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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