Service tax transportation at the time of sale

Dear Readers,

I understand that service tax is to be paid on carriage-inwards. Our company is engaged in manufacturing of news print paper and issues excise cum VAT/CST invoices to its customers. The company is paying freight on transportation at the time of sale and billing it to the customer by showing it as a seperate item in its excise invoice.

Now there are two questions.

1. Is our company liable to pay service tax on freight in above case?

2. Is excise duty applicable on freight amount?

Thanks in Advance.

Replies (1)

ST is payable on freight 

as per CE valuation rules, the place of sales is not factory gate but destination point, ( as you are charging freight also in invoice) so the transporation value would be included in assessable value and ED payable on gross.

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