SERVICE TAX ON REIMBURSEMENT OF FREIGHT

[SUMEDH AYARE]

Dear Sir

 

As a service receiver whether i am liable to pay service tax on reimbursement of freight.

Details : Golden transport delivered the goods to us.

Golden tansport received payment from manufacturer of goods.

Manufacturer raised debit note in our favour (towards freight charges)

Regards

Sumedh 

[rajkumar shukla]

pl confirm whether you are showing such freight expenses in your P&l account.if not, you are not liable to pay.

[deepak gulati]

as per the provisions there is reverse charge in case GTA but basically the person who is liable to pay freight, will be liable to pay the service tax  it means if it is "freight to be paid built y" than the  service receiver is liable to pay ST and if it is "Fright paid built y" than receiver is not liable to pay ST.

 Thus in your case you are not required to pay ST.

Regards

Punit Bansal

 

AI Summary

Service Receiver Not Liable for Service Tax on Reimbursed Freight Charges Under Reverse Charge Provisions A service receiver inquired about their liability to pay service tax on the reimbursement of freight charges. Golden Transport delivered goods, and the manufacturer paid them, subsequently raising a debit note for freight charges to the service receiver. One respondent advised that if the freight expenses are not recorded in the profit and loss account, the service receiver is not liable for service tax. Another explained that under reverse charge provisions, the person liable for freight payment is responsible for service tax. In this case, the service receiver is not required to pay the service tax.