Service tax on freight

882 views 7 replies

If transporter undertakes to pay service tax on freight himself, then does the consignee liable to pay service tax?

Replies (7)

To the extent I know, the consignor or consignee are not liable to pay Service Tax if the Transporter undertakes to pay it.

As per definition of "person liable to pay service tax',consignor or consignrr , as the case  may be, is liable to pay tax. If definition absolves them, then the transporter is liable to pay.

Raksh*t Verma 09810525780

i think transporter is not liable as he is nowhere in the provision, either consignee or consignor is liable to pay tax.

Same is recovered by consignee or consigner  on GR Slip if transporter take liabilty to deposite service tax on freight

In such case, neither consignee nor consignor is liable for service tax.

 

As per the provisions, consignor or consignee is liable to pay service tax and register themselves as service receiver and pay tax,even if transporter pays the liablity is not absolved to consignor or consignee.

If transporter is paying , they have to show in the LR that s.tax borne by them.. no need for c'nor and c'nee to pay tax then..


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register