Service tax Liability when freight include supply bill

[Guest]

Dear Experts,

kindly guide

there is a Vender/supplier who include freight charges into bill (exclude service tax) of supply. kindly guide can service receiver / consignee be liable to pay service tax or not. mostly service tax (GTA) liability bear by a organisation who pay for transporter.

Regard

Vikram

AI Summary

Who Pays Service Tax on Freight Charges? Supplier or Consignee? The Payer of Freight Bears Liability. A vendor includes freight charges in the supply bill but excludes service tax, raising the question of who is liable to pay the service tax. Experts in the forum discuss that the responsibility typically falls on the party paying the freight. If the supplier pays the transporter and recovers the cost from the purchaser, the supplier should pay the service tax. Alternatively, if the freight is on a 'to pay' basis, the consignee pays the transporter and the service tax. The consensus is that the payer of the freight bears the service tax liability.