service tax on freight outward

[Anil Jangid]

Dear sir,

We prepare our excise invoice as below for example

ass. value ex. factory 50000

central excise concessional rate 2% 1000

Total 51000

cst 2% 1020

freight recovery 2000

Total 54020

We are not include freight in assesable value due to ex. factory sale price ,show separately in excise invoice.. while calculate excise duty.we are pay freight on behalf of consignee.and show freight recovery.in excise invoice.

Transporter raise bill to us therefor we are liable to pay freight outward or consignee liable to pay.now my question who will pay service tax consignee or consignor.under reverse mechanism under gta. please reply.

AI Summary

Consignor Liable for Service Tax on Freight Charges in GTA Transactions Under Reverse Charge Mechanism A query was raised regarding the responsibility for paying service tax on freight charges in a transaction where the consignor pays the transporter. The excise invoice shows freight separately from the assessable value. The question was whether the consignor or consignee should pay the service tax under the reverse charge mechanism for Goods Transport Agency (GTA) services. Responses clarified that the party paying the freight, in this case, the consignor, is liable to pay the service tax according to the service tax law.