who is liable for service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2010 there is one case where if the system is, freight is being charged by seller company to customer by issuing debit note which is already fixed by mutual consent between the Customer and Company. The transporter is being paid by the Company. The service tax is paid by the Customer on the freight amount reimbursed to company. Who is liable to pay Service Tax.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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12 May 2010 In this case, the person liable to pay freight to the GTA is the company. Hence the company is liable to pay Service Tax.

Who ultimately bears the cost is not relevant.