Liability of service tax on freight, Service Tax

[A RAVINDRA]

As per customer's request, an item was sent to Japan for inspection purpose. Our C&F agancy has sent his bill for the reimbursement of Freight charges on account of exporting the item to japan for inspection purpose as per the requirement of customer. Are we liable to pay GTA service tax on the said freight The said transaction has occured in fy 2008-09

Posts / Replies

[Rama Krishana]

With effect from 7-7-2009 the provisions related to service tax on GTA in case of export of goods have been modified. Earlier, the exporter was supposed to pay service tax on GTA first and claim refund thereafter.