Respected All,
If a manufacturer of excisable goods is arranging transportation for their customers and collecting such freight charges on his Invoice (such freight charges are not includible in Assassable value of excisable goods) , than such arrangement of transportation for customers would be liable to service Tax under Business sport service.
Regards,
Sanjeev.
Manufacturer Questions Service Tax Applicability on Freight for Customers; Debates on Consignment Notes and Assessable Value A manufacturer of excisable goods inquired about the applicability of service tax on transportation arrangements made for customers, with freight charges not included in the assessable value. One respondent stated that service tax would apply under the Goods Transport Agency (GTA) service. Another disagreed, noting that GTA service requires a consignment note, which the manufacturer does not issue. A third respondent mentioned that liability could be waived if the buyer assumes responsibility for the service tax. The final reply suggested including freight charges in the assessable value if the manufacturer's vehicle is used, indicating a potential tax strategy. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
