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CA Final 775 views 1 replies

Doubt Regarding Freight

According to terms and conditions purchaser will bear the freight .But when i sell the goods to buyer i pay  the freight on the behalf of buyer and issue debit note thereafter. But i have doubt

(1)who will pay service tax if transporter is not maintaining books.

(2) if in the bill is written consignor will pay freight or payer will pay/

(3) if service tax is charged in the bill.

(4) if purchaser is agree to bear service tax on freight then who will deposit service tax and take cenvat credit under above 3 circumstances.

Replies (1)

1.Since Transportation is not your Business, the transportation for sending goods is  Business auxiliary service provided by you to the recipient of goods.

2.Transporter have no liability to pay service tax, it is the liability of the reciepient of transportation service.

3. it is depend up on the mutual consent between the consigner and consignee that who will going to pay service tax.


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