TMI BlogService tax on transportation by supplier of GoodsX X X X Extracts X X X X X X X X Extracts X X X X ..... Service tax on transportation by supplier of Goods X X X X Extracts X X X X X X X X Extracts X X X X ..... e are purchasing Charcoal from one supplier. The supplier has quoted price of ₹ 400 per ton + applicable Sales Tax. The supplier shall also undertake the transportation of the goods to our pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and charge ₹ 700 per ton. Whether we are liable to pay service tax on RCM basi Reply By Ganeshan Kalyani: The Reply: From your query it seems that supplier is taking care of freight expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses. He would arrange for freight and pay freight to the transporter. Hence the liability to pay service tax befalls on him. Thanks. Reply By KASTURI SETHI: The Reply: I concur with views of Sh.Gan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eshan Kalyani, Sir. Freight being borne by the supplier, hence liability for payment of ST on him ( on the supplier). Reply By CS SANJAY MALHOTRA: The Reply: Dear Mr. Sham, Agree with both experts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Person (Consignor / Consignee) making the freight payment is liable to pay Service Tax under RCM, but this does not include Courier Companies (Blue Dart / DHL........) even if they transport material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as they are registered as Cargo Management Services.
Reply By KASTURI SETHI:
The Reply:
SH.CS SANJAY MALHOTRA JI,
Thanks for enrichment of knowledge, Sir. X X X X Extracts X X X X X X X X Extracts X X X X ..... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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