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TMI BlogSERVICE TAX ON FREIGHT COLLECTED FROM CUSTOMERX X X X Extracts X X X X X X X X Extracts X X X X ..... I am a manufacturing unit. I have issued a excise invoice and charge freight seperately on the invoice. i have collected 12 lac as freight from customer and paid to GTA ₹ 10 lac. ₹ 2 lac is my income. Neither i have charged any excise duty nor service tax on ₹ 12 lac. Now my question is whether i am liable to pay service tax and if required then at what about and under what circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances. - Reply By piyush agarwal - The Reply = I have paid service tax on 10 lac paid to GTA under RCM. Now again i am liable to pay any service tax? - Reply By Himansu Sha - The Reply = The amount paid to GTA agency is liable for tax. Such amount should be the taxable value. - Reply By Himansu Sha - The Reply = Any profit on account of transport income will not be added to the assessable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value as held in Baroda electric meters ltd vs cce 1997 (94) ELT 13 = 1997 (7) TMI 126 - SUPREME COURT OF INDIA - Reply By Rama Krishana - The Reply = I concur with the views of Mr. Himanshu This amount may not be liable to central excise nor would be chargeable to service tax - Reply By Rama Krishana - The Reply = But, obviously you may be liable to service tax on GTA as a whole i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 lacs if the conditions are satisfied. But not on rs. 2 lacs separately. - Reply By piyush agarwal - The Reply = In my view I am only liable to pay service tax on 10lac which I have already paid. Further I am not suppose to pay neither excise nor service tax on any amount of freight collected from customer as service by transportation of goods other than GTA and courier agency is exempt under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... negative list. Since service is covered under negative list hence I am not suppose to pay any tax on amount of freight collected - Reply By Himansu Sha - The Reply = Thank you Ramakrishnaji - Reply By KASTURI SETHI - The Reply = In this case 100 % liability is upon service receiver. GTA service has been provided. There is service provider, service receiver and consideration. As per ST l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw, Service Tax on ₹ 12 lakhs is required to be deposited with Govt. If not paid, SCN demanding ST along with interest and penalty will be issued. Freight amount is ₹ 12 lakhs and not ₹ 10 lakhs. Service receiver has paid freight to the querist/consignor. Status of freight cannot be changed by any stretch of imagination. Who has paid the freight ? This question will decide the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fate of SCN to whom is to be addressed. - Reply By KASTURI SETHI - The Reply = Sh.Pyuish Aggarwal Ji,. In case ST is not paid on balance amount of freight and SCN is not issued within prescribed time limit, let me know on this forum. I shall be happy to gain knowledge from you. - Reply By MUKUND THAKKAR - The Reply = I am agree with respected Sir Kasturi Sethiji, ₹ 2 lacs. coming un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the additional consideration. Dept will consider this amount as part of value. - Reply By piyush agarwal - The Reply = i agree with the views of Himansu Sir. 2 lac is profit element in transportation and same cannot be charged to service tax. - Reply By KASTURI SETHI - The Reply = There is a lot of difference between Central Excise Valuation method and Service Tax valuation method. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is with reference to the Judgement of Supreme Court quoted By.Sh.Himansu Sha Ji. - Reply By KASTURI SETHI - The Reply = Sh.Piyush Agarwal Ji, Sh.Himansu Sha agrees with you. You cannot say I agree with Sh.Himansu Sha You are querist. Querist is neutral. Querist is seeking remedy. Naturally querist will tilt towards the beneficial side. Ball is no t in the court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of experts or querist.At present, ball is in the court of Service Tax Department, Govt. of India. Let us see which way the winds blow. We are expressing our independent opinions and these opinions have no impact on Govt. These opinions after weighing pros and cons help the querists and other readers in taking the decision. - Reply By piyush agarwal - The Reply = Yes Sethi Sir i agree. Let s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee what department think.Thanks. - Reply By JAIPRAKASH RUIA - The Reply = Non chargeability of Excise duty for difference amount of freight seems very much clear in SC decision but service tax under RCM is still to be look into. Both should be look into with separate view. - Reply By KASTURI SETHI - The Reply = Regarding CE duty on freight, place of removal will come into picture. Here issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of payment of ST on the element of freight. The party does not want to pay ST on the freight of ₹ 2 lakhs treating it as profit. It cannot be treated as profit from ST angle. He may treat it as profit in his books of accounts but ST has to be paid. No escape route as per ST law. - SERVICE TAX ON FREIGHT COLLECTED FROM CUSTOMER - Query Started By: - piyush agarwal Dated:- 20-5-2017 Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice Tax - Got 16 Replies - Service Tax - 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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