St liability for discount of freight amount

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IN TAX INVOICE OF PURCHASE OF GOODS THERE IS A FREIGHT CHARGES INCLUDED AND  SEPRETALY GIVEN ,BUT THE SAME AMOUNT IS GIVEN AS DISCOUNT , SO NOW IS THERE ANY LIABILITY TO PAY SERVICE TAX  BY CONSIGNEE ON 25% OF SUCH AMOUNT CONSIDERING REVERCE CHARGE MECHANISM , AS THERE IS SPECIFIC NOTE ON BILL THAT" ST ON FREIGHT PAYABLE BY CONSIGNEE"

 

AND IS THERE ANY LIAB. IF I AM NOT PAYING ST ON THE SAME , BY TREATING IT AS DISCOUNT.

 

KINDLY KNOWME  YOUR VALUABLE OPINION...

Replies (1)

Dear Pradip Gupta,

As freight is charged in the bill you are required to pay service tax under reverse mechanism.

As service is provided to you and discount is only deduction of the amount payable by you to the service provider.

 

 


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