Liability to pay service tax in case freight reimbursement

Vineet Vaish (Service) (222 Points)

02 July 2010  

Dear Sirs(),
Please advise regarding-
1. Our company is a manufacturing co. / pays freight to supplier for material sent on CIF basis / it is reimbursement of freight to supplier but transporter's bill mention "Freight to be paid" / sent along with Invoice.
2. Our co. has sent finished goods on request of buyer to another place / our co. charges freight amount in invoice separately from buyer / we sent the material through transport and pay the freight amount to transporter / transporter raise bill in name of our company.
My question is- (1) whether liability to pay service tax arise on our company?
(2) If yes, whether we can get the credit of service tax paid (in both the cases)?
Thanks & Regards
Vineet k.vaish