Service Tax on Freight

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On behalf of our customer we are arranging transportation of goods and recovering from the customer. Do we need to charge service Tax ?

If yes do we need to raise seperate invoice or can include in invoice as a seperate line item ?

 

Replies (5)

You Need charge service tax. service tax is charged and collected by service Provider(In this Case Goods carrier). you Need not Charge service Tax Bcause your service i.e., Arranging transportation of Goods, iS not covered under services which are subject service tax.

 What is the status of your entity? IF you are a company, then you have to get yourself registered and pay service tax on freight paid after allowing abatement of 75%

I mean, if you are any of the specified persons, then you are liable to discharge ST under reverse charge mechanism.  

if my co. is pvt. ltd. company than will we liebal to pay service tax or buy no. of service tax.

plz. give me seficent ans.

09813175245 is my cell no.

The GTA ( booking agents ) who normally issue a consignment ntoe are liable under service tax. However if their services are used by specified person ( companies/ corporations/. registered partnerships etc)  then the consignee / consignor who is reponsible ( this is important) has to pay the ST on 25 % of the value.

If you are only paying on behalf of the other then you can provide the bills in his name to him and get the reimbursment separately. The cusomter then would pay the ST.

If you are repsonsible for paying the freight then you can pay the ST and charge the entire cost as aline item.


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