Excise duty chargeability on freight charged separately in invoice, Central Excise

[Yatin Bhopi]

Dear Sir

We are manufacturer. 1) The sale contract is on FOR basis i.e. the ownership of goods passes to the customer when goods delivered to the customer premises. We wish to show freight charges separately in the invoice: Is excise duty payable on freight charges? 2) Contract is on ex-works basis but transport and insurance is arranged by us and shown separately on invoice, ownership passes to the customer when goods given to the transporter: is excise duty payable on freight charges recovered?

Please advice

Posts / Replies

[SHIVKUMAR SHARMA]

Dear  Mr.Yatin

If you show freight amount Seprately in invoice You need not to pay excise duty on Freight But  you have to pay service tax  to the  Govt.on 25% of freight amount paid to the transporter on the basis of lorry Receipt.                                                 

Shivkumar Sharma