27 June 2008
I have hired a transporter to transport cement from the manufacturer's factory to my godown. The terms with the manufaturer is that I take delivery Ex-factory and his responsibility ceases once the material leaves his factory. The transporter charged service tax on his bills for freight which we honoured.
Now, the question is: Will there be a liability on us on the service tax amount paid by us to the transporter as some of my friends feel we should not reimburse service tax on freight.
Kindly clear my query and please clarify the applicability of service tax in this scenario?
CAclubindia
