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Transport of goods by road

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This query is : Resolved

CA. AMIT (Querist)

16 April 2013 REG: APPLICABILITY OF SERVICE TAX ON FREIGHT PAYMENT ON BELOW MENTIONED CASES.

CASE 1: FREIGHT AMOUNT CHARGED IN THE BILL OF SUPPLIERS. WHERE WE PAY FREIGHT CHARGES TO THE SUPPLIER AND SUPPLIER PAYS TO TRANSPORT COMPANY. WHETHER PURCHASER LIABLE TO PAY SERVICE TAX ON FREIGHT AMOUNT PAID SUPPLIER.

CASE 2 : WHERE TRANSPORT COMPANY CHARGES SERVICE TAX IN ITS INVOICE AND WE AS A COMPANY HAVING MANUFACTURING LICENSE PAY THE SERVICE TAX TO THE TRANSPORTER. WHETHER THE COMPANY PAYING FREIGHT NEED TO PAY SERVICE TAX BOTH TO GOODS TRANSPORT AGENCY AND TO THE GOVT ACCOUNT SEPARATELY.

NILESHKUMAR

NILESHKUMAR (Expert)

17 April 2013 The Tax incidence of GTA is very clear , the consignee or consignor who pays freight to the transporter has to pay Service Tax . If your transporter is chanrging S.tax in Bill T and collecting from u , he has to pay the same to the govt account. Manufctuer can take credit of inward freight.
Hope this is clear.

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