Our supplier is hiring a transporter for supply of goods to our premises.
The transporter is paid by supplier.
Supplier in his bill to us is claiming the supply value and transportation charges. A copy of transporter bill and consignment note is attached. Same amount of freight is being claimed by supplier as reimbursement.
However in the consignment note the transporter has indicated that service tax is payable by consignee i.e us.
Pls clarify as to whether we are liable to pay service tax to govt irrespective of not paying freight directly to transporter??
CAclubindia
