Service tax under rcm

Please advise whether service tax under RCM is applicable in the present case :-

 

X company supplies materials to Y company using the services of logistics company Z which is an associate of X company. In the purchase order of Y company raised on X company, Y company accepts to pay a fixed rate per MT for freight which X company includes in the bill for supplies. LR is raised by Company Z for transportation of materials from X company to Y company indicating Freight Prepaid. Whether Y company is liable to pay service tax on RCM? If yes, kindly give details of court order, if any.

Thanks

K Venkatraman

 

Replies (1)

As per notification No. 30/2012-ST the person liable to pay freight in respect of services provided by a GTA in respect of transportation of goods by road is liable to pay Service Tax under RCM. X Ltd is liable to pay service tax under RCM, since X Company is paying freight charges. Y Company is not liable.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details