Service Tax on Freight

This query is : Resolved

parimal (Querist)
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17 March 2009 we are charging service tax on basic price of service provide in the invoice.
After that we add freight (upto the place of delivery) actual + Rs.50/100.

we are paying service tax as per invoice.

Is service tax payable on actual freight?

Is service tax payable on actual freight +Rs.50/100?

Dayal

Dayal (Expert)
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21 March 2009 Rebilling the freight on actual basis will not attract service tax as liability has been paid.

But the nature of transaction is not clear.

Please elaborate, what is the service you provide, what is the arrangement with the client. What is mark up for of Rs. 50/ 100.

Your inputs will enable us to guide you correctly