16 April 2016
My company have received an Invoice in which Seller of goods has charged Transport Charges in the Invoice which are actually paid by him. Therefore, my question is, whether company is liable to pay service tax on transport charges as per reverse charge, charged in the Invoice of Seller of goods ?
17 April 2016
Unless the transport charges are showed in your books as "Freight Charges" or "Carriage Inward" you need not pay the tax under Reverse Charge Mechanism as you have not paid the charges to the transporter on receipt of a proper Consignment Note.
CAclubindia
