Service tax on freight

This query is : Resolved

sanish p balan (Querist)
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02 July 2012 Sir,

If The Transporter pays the Service Tax,whether The Consignee/Consgner can Claim this payment????????

C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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02 July 2012 No, if service tax on freight pay by Tranportor than consignee/consignor can not claim this payment.

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sanish p balan

sanish p balan (Querist)
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02 July 2012 Thank You Sir.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 July 2012 If the transporter has paid the service tax, he must have recovered the same from the consignor/consignee by adding the service tax in his invoice/bill.

So for the consignor/consignee, the total expense will be the amount of freight and service tax thereon.

The consignor/consignee can also avail credit of the service tax provided the other conditions are fulfilled.

sanish p balan

sanish p balan (Querist)
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02 July 2012 Sir Other Conditions means???????

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 July 2012 He is eligible to avail input credit. He is a service provider. The input service has been used for providing output service.

In short he must comply with the CENVAT Credit Rules, 2004.