St on transport

In case Sender of the goods (i.e., Consigner) is not an individual, but a registered assessee he is required to pay service tax on reverse charge basis on transportation charges paid by him to the transporter as per Rule 2 (1) (d). Depending on the terms of contract with the transporter you may deduct the amount of service tax. Even if you do not deduct it from the payments made to the Transporter the liability to pay service tax would be on Consigner or Consignee. I think that the rules do not specifiy any procedure for collection of service tax from the transporter. Hence it depends on the Contract between the transporter & Consigner/Consignee, but the liability has to be discharged by Consigner/Consignee.

So either of the consinee/consignor has to deduct the service tax.

If the assesee is a company,which is sending the goods to the party and charging tax from them, then who should be deducting the tax??