Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Service tax on freight

Ashish Sablok (B.Com(H),CA Final) (132 Points)

12 March 2012

If transporter undertakes to pay service tax on freight himself, then does the consignee liable to pay service tax?

Reply
Follow
Share

7 Replies

Dhairya (Audit-in-charge) (289 Points)
Replied 12 March 2012

To the extent I know, the consignor or consignee are not liable to pay Service Tax if the Transporter undertakes to pay it.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Rakshit (practising) (338 Points)
Replied 12 March 2012

As per definition of "person liable to pay service tax',consignor or consignrr , as the case may be, is liable to pay tax. If definition absolves them, then the transporter is liable to pay.

Raksh*t Verma 09810525780

1 Like

Ashish Sablok (B.Com(H),CA Final) (132 Points)
Replied 12 March 2012

i think transporter is not liable as he is nowhere in the provision, either consignee or consignor is liable to pay tax.

kuldeep (Accountant) (49 Points)
Replied 13 March 2012

Same is recovered by consignee or consigner on GR Slip if transporter take liabilty to deposite service tax on freight

SHARIQUE TAHSEEN (OWNER) (57 Points)
Replied 13 March 2012

In such case, neither consignee nor consignor is liable for service tax.

Upgrade to CAclubindia Pro. Subscribe Now!

siva sankar reddy (chartered accountant) (104 Points)
Replied 13 March 2012

As per the provisions, consignor or consignee is liable to pay service tax and register themselves as service receiver and pay tax,even if transporter pays the liablity is not absolved to consignor or consignee.