Ram kr. (Buisness) (883 Points)
31 October 2013Dear Experts,
We are registered manufacturer in Central Excise and Service Tax Department. We are liable to pay service tax under GTA services as a service receiver. Our some Raw material supplier shows freight amount in raw material invoice. They are not raising seperate freight invoice nor GR in our favour. Are we liable to pay service tax on such freight amount. Please advice.
Thanks
One Of A Kind
(CA Final & CS Professional Student)
(187 Points)
Replied 01 November 2013
Failure to issue the GR does not change the nature of transaction materially.You are liable to pay the Service Tax inspite of them not issuing you any goods consignment note.You will be violating the law if you do not pay the tax.
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 01 November 2013
It seems that your supplier is making payment of freight to the transporter and recovering the same from you. Now, if they are making payment on there own behalf, the service tax shall be paid by them. Otherwise, if the agreement is such that the payment to transporter is being made on your behalf, as agents, then the person liable to pay freight shall be you, who shall discharge the tax liability on reverse charge.
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