As per service tax rules, in case of goods transport service the service receiver(Consignor or consignee) is required to pay service tax on the transporters bill amt. Now, if a consignor pays transporters bill directly but recovers the amt from consignee, then who will be liable to pay service tax on the service charges?
05 May 2009
In my view the consignor only liable for payment of service tax as he discharged the bill/invoice amount. Further, the recovery/reimbursement is left with consignor whether he do so or not it does not shift the liability to consignee.
CAclubindia
