Service tax on inward freight

This query is : Resolved

Rakesh Sharma (Querist)
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25 December 2014 Dear Experts,
I want to know who is responsible to pay service tax on the below mentioned occasion :-
A) Importer
B) CHA
C) Transporter

Goods delivered at A's premises & B pay freight to C on our behalf. Then B raised a consolidated invoice to us with following particulars :-
i) Transporter Charges with Service Tax ii) Agency Charges
iii) Other misc. expenses

Should we also deposited Service tax on transporter charges paid to CHA as S.Tax has already been charged by CHA in invoice.

One more thing we want to know that should we deduct TDS on transport charges also as the single invoice has been issued and CHA & Transport have the valid PAN. Please advise.

Please advise.

CA Robin Betala

CA Robin Betala (Expert)
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26 December 2014 As per my opinion for such future transaction you should ask CHA to charge service tax on his part of service and not on reimbursement of Exp. As reimbursement of exp are not liable to service tax. Any now pay service tax on GTA service. As service tax department will harass you for the payment of service tax on GTA even tough you have indirectly paid to CHA.

Deduct TDS on whole payment made to CHA including reimbursement of charges as per Clarification by Circular No. 715, dt. 8-8-1995: