Service tax on reimbursement of freight

Dear Professionals,

We are a Private Limited Company, we purcahses many type of material from various suppliers out of which some suppliers charge Freight in their Invoice from us. Now my question is since the Reverse Charge Mechenism applicable on us, should we pay Service Tax on Freight to Govt.,  which is charged by us in Supplier Invoice.

Regards

Nitin Jatav

 

Replies (2)

Pvt Ltd company would be liable to pay service tax on RCM on services availed from the transport vehicles vendors provided the consignment note is issued in the name of Pvt Ltd company and payment of freight is made by it.

In your case. it is the GTA charging ST to your suppliers, and you are just reimbursing, so may not liable for RCM.

Dear Dhirajlal Rambhia,

Thanks for your valuable clarifiacton . 

 

Regards

Nitin Jatav
 

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