Inward Freight

This query is : Resolved

sekhar (Querist)
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21 May 2010 Dear Sir,

Thank you for your reply. But i had some doubt? please clarify

Dear Sir,

Please give me the suggestion on this problem. We were purchasing material from out of state. In the invoice it was stated the following:

Ms.Plates Qty.10@ 50000 = 5,00,000
Excise duty & edcess@ 10.3% = 51,500
cooly = 2,500
Freight = 17,000
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5,71,000
CST @ 2%= 11,420
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Total Invoice = 5,82,420

In the above bill there is a freight of rs.17000/- so we have to be show freight separately in inward and we have to pay service tax on it? or we have to add freight to material cost not paying service tax.

kindly clarify service tax on GTA is payable only for freight comes with separate freight letter or it comes with invoice value also.

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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26 May 2010 does the transporter is the owner of the vehicle or its agency vehicle. If it is his own vehicle there will not be any ST otherwise you have to pay ST on 17,000 (if it satisfies the conditions lay down in rule 4A then the same is consider as consignment note for the purpose of payment of ST.