TMI BlogService tax Liability when freight include supply billX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, kindly guide there is a Vender/supplier who include freight charges into bill (exclude service tax) of supply. kindly guide can service receiver / consignee be liable to pay service tax or not. mostly service tax (GTA) liability bear by a organisation who pay for transporter. Regard Vikram - Reply By KASTURI SETHI - The Reply = You are liable to pay service tax. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By surya narayana - The Reply = Dear Friend, In the trade different practices are in place. One such practice is Consignor pays the freight and includes in the invoice value including ST. This might be because of the Purchase order terms. In case , if you are eligible for such Service tax paid on the freight, then it is advised to change the Purchase Order terms and ask the supplier to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook the consignments on freight to pay 'basis. Best Regards S Suryanarayana - Reply By Ganeshan Kalyani - The Reply = The supplier has charged freight on sale invoice. This means that the supplier would have paid freight to the transporter and is now recovering the same from the purchaser. In this case supplier is supposed to pay service tax as he has paid freight amount. If the suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier is just arranging for the transport then he is not supposed to charge freight on invoice. Instead he should write as to pay basis and then the transporter will issue consignment note in the name of purchaser and purchaser will make the freight payment. And freight will be paid by purchaser. Based on the above para querist should check the actual background as to who is going to pay freight. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thanks. - Reply By vikram singh - The Reply = Thanks to all. It is observed that service tax will be pay by consigner when they pay for transporter. please revert, if I am not correct. Regard Vikram - Reply By Ganeshan Kalyani - The Reply = No you are not wrong. - Reply By KASTURI SETHI - The Reply = I agree with Sh.Ganesh Kalyani, Sir. In simple words, who pays the freight should pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Service Tax whether consignee or consignor. A lot of discussion has already been done on this issue in this forum. So no need to further elaborate. - Reply By vikram singh - The Reply = Thanks a lot KASTURI SETHI , Ganeshan Kalyani - Service tax Liability when freight include supply bill - Query Started By: - vikram singh Dated:- 25-4-2016 Service Tax - Got 7 Replies - Service Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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