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TMI Blogfreight charges paid to supplierX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear expert I was received one invoice( duplicate for transport). detail as follows. Assessable value - 40000/- Excise duty 12.36- 4944/- Total - 44944/- Freight - 2500/- G. Total - 47444/- I was paid full amount to supplier Rs. 47444/- can i lible to service tax on Rs. 2500/- on Freight . Please guide. Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards Manoj Raut - Reply By JAMES PG - The Reply = Is there any clause in the Purchase Order regarding taxes and duties especially on Service Tax on freight ? In the LR issued by the transporter, who has been nominated as the person liable to pay ST ? - Reply By Pradeep Khatri - The Reply = It seems that you have reimbursed the freight charges to your supplier but not directly paid to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Transporter. Hence, no need to pay the services tax. - Reply By JAMES PG - The Reply = As per the provisions of Rule 2(d)B, any person who is liable to pay freight either by himself or through his agent is liable to pay ST on freight. In the particular case, if supplier may be paying freight to the transporter as an agent of the buyer, as per the terms of Purchase Order, then liability t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pay ST falls on buyer.Supplier can escape laibility based on the PO terms and LR which might have specified consignee as the person liable to pay ST - Reply By NEERAJ KUMAR, RANCHI - The Reply = I am in agreement with Mr Khatri, if you have not paid freight charges directly to the transporter and transporter has not issued invoice in your name you are not required to service tax - Reply By J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AMES PG - The Reply = The wording as per Rule 2(d) B of Service Tax Rules is the person who pays freight or liable to pay freight either by himself or through his agent Dictionary meaning of liable is liable to perform an act for which he/she/it contracted to do As per Rule 4B of ST Rules , GTA has to issue Consignment Note and should contain details of Person liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay ST as Consignor, Consignee or GTA. If freight is charged in the Invoice and Consignment Note mentions Person liable to pay ST as the Consignee and contractual terms in the PO states that ST to be paid by the Consignee, supplier of the goods can definitely escape liability and it will be cast upon the Consignee. Consignee is legally bound as as he is liable to perform and act for which he i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contracted to as per the Purchase Order or terms of sale. In the case of MSPL Ltd Vs CCE, Belgaum (2009 (5) TMI 376 - CESTAT, BANGALORE) = (2009-TIOL-1678-CESTAT-BANG), it was held that Consignee is liable to pay ST since the freight is reimbursed by him - freight charges paid to supplier - Query Started By: - manoj raut Dated:- 29-7-2012 Service Tax - Got 5 Replies - Service Tax - Discu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion 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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