on service tax on freight and tds on it

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2010 Dear pl suggest me-

1.One supplier (regular supplier but not transport agency)has included freight charges in his bill,

wether we will pay service tax on freight charges ?

wether we will pay in addition with its bill or separetly directly to C.Excise dept.?

wether we will deduct TDS on same amount.?

2.we have made a contract with transport agency for receiving goods from supplier's depo on behalf of us,that's transporter raising bill to us for transport service.in this case we are paying service tax on transport bill directly to C.Excise dept.wether we need to deduct TDS in this case(2nd)

wether like this way we will pay ST or in addition with supplier's bill in sl no 1 case.?

thanks

Ca satyabrata Bal

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

26 July 2010 1.One supplier (regular supplier but not transport agency)has included freight charges in his bill,

wether we will pay service tax on freight charges ?

Ans: No. This is merely reimbursement. The supplier must have paid to the GTA and is liable for Service Tax.

wether we will pay in addition with its bill or separetly directly to C.Excise dept.?

Ans : You need to pay the bill amount only. No need to pay Service tax, either to the supplier or to the Central Excise Department.

wether we will deduct TDS on same amount.?

Ans : Since it is merely part/component of the purchase transaction, TDS not applicable.

2.we have made a contract with transport agency for receiving goods from supplier's depo on behalf of us,that's transporter raising bill to us for transport service.in this case we are paying service tax on transport bill directly to C.Excise dept.wether we need to deduct TDS in this case(2nd)

Ans : You need to deduct TDS on the freight amount only. No need to deduct TDS on Service Tax, as you are not crediting the amount of Service Tax to the account of the transporter.

wether like this way we will pay ST or in addition with supplier's bill in sl no 1 case.?

Ans : In the first mentioned case, No ST and No TDS as well.