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

Pure agent exclusion may prevent reverse charge on freight, else freight reimbursement could attract service tax on recipient.
Liability for service tax on freight shown in a raw material invoice depends on whether the freight is a reimbursed pure agent expense under Rule 5(2); if the supplier or transporter qualifies as a pure agent and the eight prescribed conditions (payment to third party, separate invoice indication, recipient authorization and knowledge, recovery of only paid amounts, goods/services procured being additional) are satisfied, freight may be excluded from value and not attract reverse charge on the recipient; absent such characterisation in a pure sale, liability rests with the supplier.