Freight charged along with raw material Invoice

[RAM SHARMA]

Dear Experts,

We are registered manufacturer in Central Excise and Service Tax Department. We are liable to pay service tax under GTA services as a service receiver. Our some Raw material supplier shows freight amount in raw material invoice. They are not raising seperate freight invoice nor GR in our favour. Are we liable to pay service tax on such freight amount. Please advice.

Thanks

AI Summary

Manufacturer Questions Service Tax Liability on Freight in Raw Material Invoices; Rule 5(2) and Reverse Charge Discussed A manufacturer registered under Central Excise and Service Tax inquires about liability for service tax on freight charges included in raw material invoices. Responses vary: one suggests liability for both VAT and service tax, another argues no service tax is due if freight is included in the invoice. A third response notes that under the reverse charge mechanism, the freight payer is liable for service tax, and suggests labeling freight as 'Other charges' to avoid complications. Further discussion references Rule 5(2) about pure agents, suggesting the supplier may be liable for service tax if acting as a pure agent.