Goods tranport agency

[ANIL MANTRI]

A company  procure indonesian coal (in transit sale under CST) from a company. The company sends invoice along with their delivery challan and will be sending endorsed consignment note. In invoice they mention truck number wise details, of how much metric ton coal, they have supplied through that truck. They add transport charges in the invoice separately and mentions in invoice as service tax payable by consignee. Are we liable to service tax .

[SHIVKUMAR SHARMA]

Mr.Anil

No, you are not liable to make payment of service tax as you have not make any payment directly to the transporter.

SHIVKUMAR SHARMA

AI Summary

Service tax liability on transport charges hinges on consignee making payment to the transporter; no direct payment removes liability. Advisory conclusion: the consignee is not liable for service tax because the consignee did not make any payment directly to the transporter; an invoice itemising transport charges and stating that service tax is payable by the consignee does not, by itself, create liability without direct payment to the service provider.