21 May 2010
If freight is includes in the purchase invoice value, and we are paying the total invoice value with freight also, we have to show in ward freight seperately or it was added to material cost? if we show seperately in in ward freight we have to pay service tax on it or not?And also tell me we have to pay service tax on freight which comes separately by transporter with freight letter & also it includes in invoice price also?
21 May 2010
you are reimbusing freight on purchase its your purchase cost. freight will be purchase. the saler paying freight he will deduct TDS and pay service tax.
if you will show in your books as freight then you should deposit service tax.
CAclubindia
