Service Tax on Transport bills which they are not claiming

[Anil Kumar]

I have a clarification on Transportation bills, we are manufacturing of effluent treating plants, we receive lot of chemicals in tankers, some of the registered transporter billing us with out service tax in their bills, though they are registered with service tax, In this kind of case, do we need to pay the transport amount only as he billed it, or do we have to pay the service tax on his behalf?, please help in this and clarify.

thanks

Aneel

AI Summary

Company Must Pay Service Tax on Transport Bills Under Reverse Charge; Can Claim Credit for Raw Materials Transport A company manufacturing effluent treating plants queries about service tax on transportation bills received without service tax charges, despite the transporter being registered. Two responses clarify that under the Service Tax Rules, 1994, and Notification No. 30/2012, the liability to pay service tax falls on the service receiver under the reverse charge mechanism. Since the company is a registered factory, it must pay the service tax and can claim credit for it if the service pertains to inward transport of raw materials or capital goods.