Service tax on freight income

amway@789 (CA Business) (24 Points)

18 September 2015  

Dear Sir(s),

If in the course of CST Sale, I am raising an invoice for sale of goods and that invoice also includes a separate amount of adhoc Frieght that I am charging / recovering from the Buyer. The actual Freight that I am paying to the transporter is debited to the P&L Account and I am paying Service Tax on this Freight expense through the reverse charge mechanism.I am aware that CST need not be levied on Freight income that I am levying in the CST Sale invoice. But I need to understand if Service Tax needs to be levied on such Freight income. Generally, in our case, the Freight income (adhoc basis) collection is higher than the Freight expense (actuals).

Regards Sooraj