Ratna (Executive) (25 Points)
30 October 2010
suppose raw material is cost in the form of Cst invoice and for transportation of raw material a debit note is raised & in case the transport vehicle is owned by the supplier and we are reimbursing his debit note, effectively we are the people paying the transporter hence in such a case service tax should be paid by Whom?
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14487 Points)
Replied 30 October 2010
party has not charged service tax in debit note. so you are paying without service tax. now pay service tax to govt. its your libility.
Ratna
(Executive)
(25 Points)
Replied 30 October 2010
We are purchasing raw matrial from a supplier who raises CST invoice for raw material and also raises debit note for freight charges (transportation) without charging service tax.
According to the supplier, they are hiring transport agency to transport the material to us and so being a service receiver, service tax being their liability, they are making payment.
But as they are only raising a debit note without service tax or declaration on the debit note that service tax is their liability and they will pay it.
Now as per the above situation, do we also have to pay service tax on the freight charges?
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