Service tax on freight

Hello,

We are a proprietory concern paying frieght mainly on purchases, even some times on sales. We are not under Excise. I want to know are we liable to pay service tax freight charges and what is exemption limit/criteria etc please.

Rgds.,

Gopaldas.

Replies (2)

As per Notification No.30/2012-ST dated 20 June 2012, if you are falling under any of the following, then you are required to pay Service tax under RCM

(a)  any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(c)  any co-operative society established by or under any law;

(d)  any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e)  any body corporate established, by or under any law; or

(f)  any partnership firm whether registered or not under any law including association of persons;

Since you are a proprietory concern and not registered as a dealer under Central Excise Act, 1944 and assuming you are not covered under Factories Act, 1948, you are not liable to pay service tax on freight paid to GTA. Kindly email for more details.

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