SERVICE TAX ON TRANSPORTATION, Service Tax

[SURYAKANT MITHBAVKAR]

We cleared materials to customer place through transport. Transporter raised invoice in our name without charging Service Tax and payment made by us. Now we have to recover transport charges from customer after raising debit note to them since customer order says transport charges bear by them. In the above case who is liable to pay service tax whether ourselves (Consignor) or Customer (Consignee)

Posts / Replies

[Ramanujam Varadarajan]

In respect of payments made to transporter, as a consignor who is paying freight you are liable to pay service tax on reverse charge (if you fall under specified category of persons as per the provision).   Mere recover of transport charges from the customer without any markup, i feel, would not attract any service tax in your hands.