Who will pay service tax on fright

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2012 My Clint doing business in trading of purchase and sale of iron and cement & paints he was paid fright on above commodities he will liable pay service tax on above please guide me.

B R Ramesh

B R Ramesh (Expert)
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23 June 2012 Hi

as per the service tax category under GTA (goods Transport By Agency)
following persons are laible to ST
1.Consignee
2.Consignor
3.GTA or Transporter

as per the practice lorry owner will not pay the ST since he may not be a regsitered under ST.
hence he will mention in the LR copy the service tax payable by either Consigner or the Consignee.

hence please check your LR copy & decide.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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23 June 2012 This GTA service is under reverse charge mechanism. Whether your client is already registered under Service tax Act? Please check the current negative list and abatement list and reverse charge mechanism wherein it is clearly mentioned about the liability for such services. First question is whether the freight bill indicates any service tax collection? Above rs.750/- is the criteria for paying service tax and one can avail 75% abatement for paying the ST.

rengaraj r.k

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