Service tax on freight charges paid by a company

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2011 Sir,

One of my client is a Manufacturing company has paid freight charges. The Company is also registered under Service TAx. The GTA has collected service tax on the freight charges.

My quiry is whether the company is liable to pay service tax on the freight charges on which the GTA has already collected service tax.

Whether the company can claim input credit on service taxes paid on other charges such as on courier service etc.,

Kindly clarify.

Thanking you in advance

Yours truly

P. Srinivasa

CA Sunil Anwani

CA Sunil Anwani (Expert)
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25 November 2011 The company has not to pay on the freight charges on which GTA has already collected.

Company cannot clain any input credit on Service tax paid if they are claiming the abatement.

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2011 Thanks for the immediate reply. Whether the company has to file the Servie tax return. Whether the fregith charges paid should be shown as Gross turnover and claim the same amount as exempt turnover since the service tax has already been paid to the GTA.

Kinldy clarify

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