Outward Freight Income and Expenditure Taxable, Service Tax

[Ramesh M]

Dear Experts,

We received Ex works order from customer, after wards customer requested us to engage a transporter on behalf of us to deliver goods at our premises and also confirmed to pay 5,00,000/- towards freight charges to us, in turn we need to pay the same to transporter who engaged the vehicle to deliver goods. In this transaction I request you to give advice on following clarifications :

1) Transporter charging to us for 5,00,000/-

a) Service Tax applicable ? who has to pay ?

2) Same amount we are claiming from customer through invoice

a) Service Tax Applicable ? who has to pay

3) If i am paid already service tax on Transporter bill, again we need to pay against collected from customer ???

Ramesh

Posts / Replies

[Ganeshan Kalyani]

Service tax on GTA lies on tge person who pays freight. getting the cost reimbursed from customer does not shift the liability on them. If the transporter has raised consignment note in your name then it is evident that you should discharge service tax under reverse.