Dear all
WE are mfg unit, for freight outwards & inwards we hired / contract with various transporters. Some transporters chrgd ser tax in their invoice and some transporters giving bills without ser tax. We are paying ser tax[GTA} those who not chrgd in the bill and taking cenvat credit.
Some Excise authorities saying we have to pay all ser tax on behalf of transporters. Transporters no need to pay. Is it ok? Ser tax part on service receiver is optional or compulsory?
Pl share ur views
Thanks in advance
Venkat
Manufacturing Unit Queries Service Tax Obligations on Freight; Reverse Charge Mechanism and CENVAT Credit Explained. A manufacturing unit inquired about the service tax (ST) obligations for freight services, noting that some transporters charge ST while others do not. The unit pays ST for those not charging it and claims CENVAT credit. Excise authorities suggested the service receiver must pay all ST. Respondents clarified that under the reverse charge mechanism, the service receiver pays ST on an abated value of 25% of the freight. However, if transporters like GATI handle the ST, they pay it themselves. The liability typically falls on the consignor or consignee, with an abatement of 70% on the freight amount. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
