Service tax on outward freight

767 views 4 replies

My question is that is there any implication regarding service tax in the following case?

My client purchase goods from different states & then transfer it to serval construction sites in  India.

now my point is that Is he liable to pay service tax on the basis of  REVERSE CHARGE ? 

If yes then can claim this type of ST paid as a credit?

Replies (4)
yes he is liable to pay service tax on this....but he cant take credit of the same as credit is only available for input service....ur customer (one who receive material can take credit of same)
Originally posted by : vikash
yes he is liable to pay service tax on this....but he cant take credit of the same as credit is only available for input service....ur customer (one who receive material can take credit of same)

 Dear Vikash actually there is no customer. he purchases it from suppliers & then sent it to his own construction site. so its litile bit complex i guess.

please reply after considering my point

Dear Aksh,

Yes Service tax shall be payable under reverse charge on transfer of goods to different sites.

Cenvat Credit cannot be utilized for payment of above service tax under reverse charge since after the amendment "GTA under reverse charge" has been taken out of the purview of "output service".

The credit of above sum paid under reverse charge can be utilized as for the payment of service tax (on output service) or excise duty....

Thanks Amir For ur speedy Reply.

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