Packing & forwarding

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2016 Sir, In one of our pur invoce, they have mentioned packing & forwrding charges, freight charges seperately. (for material inward). I want to konw whether we have to pay ser.tax on both or only on freight charges. what is the difference between these two?

Rajannaidu

Rajannaidu (Expert)
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01 October 2016 Packing and forwarding charges shall form part of the assessable value which is related or connection with production and sale of the goods, You have to pay service tax only on fright component.

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2016 As per Explanatation, given by You its acceptable. under RCM and But when there is no such sepertaly given by the shown then how?? to Considered... In short Whether Pay Or Not,

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Rajannaidu

Rajannaidu (Expert)
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05 October 2016 I think above explanation is enough for this query also. Packing and forwarding charges part of assessable value, no need to pay service tax on that because excise duty would be leviable on that. Service tax has to be paid on freight component which was charged by the supplier. In case RCM, receiver has to be paid .