Service Tax on Freight

This query is : Resolved

parimal (Querist)
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23 March 2009 {where service provider is not a pure agent of service receiver as per the Service Tax (Determination of Value) Rules, 2006}

The service provider arranges trasportation on behalf of the service receiver and charges actual freight to the service receiver in the invoice.

Q.1 Is service tax payable on the actual freight charged in the invoice?

Dayal

Dayal (Expert)
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23 March 2009 The provisions are amply clear in this regard.

Evalute the following to know your service tax liability on GTA

Service tax is to be paid by the consignor or consignee, even if the freight is paid by third party, you do not get absolved.

The transporter cannot charge you service tax, even if you agree to pay, your liability to pay is still open.

Check the consignment note, if you are appearing as a consignee, then you still have to pay