Service tax Liability when freight include supply bill

[Asked by 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

Service tax liability: the party who pays the transporter for freight bears the tax on freight services.
Service tax on freight depends on who pays the transporter: if the supplier pays the transporter and recovers freight in the invoice, the supplier bears the service tax; if the purchaser pays the transporter on a to pay basis, the purchaser bears the service tax. Contractual/payment arrangements and documentary evidence determine which party is the tax payer.