st charged by supplier

This query is : Resolved

RAM SAINI (Querist)
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20 May 2009 we are manufacturar exporter
we are paying service tax on GTA

some of our suppliers paying the freight to the transporter and charging it from us by adding it seperately on the material invoice but not calculating the service tax seperatly on that amount.

i want to know that are we liable to pay the service tax on that freight which was indirectly paid by us.

please advice us

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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20 May 2009 YEs, you should get tax invoice and get the credit of ST paid by you as they are ultimatly recovering fom you.

RAM SAINI

RAM SAINI (Querist)
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20 May 2009 in the above

i want to know that for the above situation who is liable for the service tax
consigner ??????who is directly paying the freight to the transporte or

consigee ??? who is indirectly paying the service tax

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ADITYA

ADITYA (Expert)
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29 May 2009 CONSIGNOR (SUPPLIER) IS PAYING FREIGHT CHARGES ON YOUR BEHALF AS PER THE TERMS OF SALE. THE FREIGHT AMOUNT IS ULTIMATELY BOOKED IN YOU LEDGER AS IN-WARD FREIGHT FOR WHICH YOU HAVE TO PAY SERVICE TAX ON THE 25% OF THE FREIGHT PAID (75% BEING ABATMENT).YOU ARE REQUIRED TO PAY SAID SERVICE TAX IN CASH ONLY.
THE SAID SERVIE TAX PAID BY YOU ON GTA IS AVAILABLE BACK TO YOU AS CENVAT CREDIT.