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FRT. CHARGED ON BILL AS PER PURCHASE ORDER CONDITION WHO IS LIABLE TO PAY SERVICE TAX

Service Tax - Started By: - DEEPAK GAGRANI - Dated:- 28-11-2015 Last Replied Date:- 29-11-2015 - Dear SirWe have received one bill of our vendor, & vendor has charged freight on bill as per purchase order condition. so my question is who is liable to pay service charge to govt.As per LR copy transporter not charged service tax on LR. & Transporter received payment from vendor & same vendor received the freight charges from us.So please tell who will pay the tax as per RCM. - Reply By .....

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t possible to take credit on payment of service tax by vendor, if possible kindly elaborate by way of circular / Section / Case law. - Reply By Ganeshan Kalyani - The Reply = Your vendor has charged freight charges on invoice which means you have borne the freight cost. At the same time the transport service is arranged and availed and the freight charges has been made to the transporter by your vendor. Thus as per provision in service tax the person who pays the freight and to whom the consignm .....

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by charging on invoice and thus net impact to his is NIL. Therefore i am of the view that you would pay service tax on the freight charges charged on the invoice under reverse charge (subject to you are the person as mentioned u/r 2(1)(d) of the Service Tax Rules) then you would be able to take service tax credit. This is my opinion. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani's reply is crystal clear. Ultimately freight is borne by Sh.Deepak Gagrani (supposing manufacturing .....

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Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; (III) any co-operative society established by or under any law; (IV) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; (V) any body corporate established, by or under any law; or (VI) any partnership firm whether registered or not under any law including association of persons; any person who pays or is liable to pay freight e .....

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