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hello,

I have a pvt ltd co. in chandigarh. We purchase goods from delhi and bill include freight,

let, goods cost = 100

cst = 2

total = 102

freight = 15

total = 117

so i pay rs 117 to the dealer of Delhi .

Am i liable to pay service tax under reverse charge?

AI Summary

Reverse Charge Liability for Service Tax on Freight: Buyer and Seller Both Liable, Buyer Can Claim Tax Credit. A private limited company in Chandigarh queries whether it is liable to pay service tax under reverse charge for freight charges included in a purchase from Delhi. One response indicates no liability due to excise duty on freight. Another suggests that either the consignee, consignor, or transporter must pay the service tax. A third response highlights that under Service Tax Rules, both the buyer and seller of excisable goods are liable, with the buyer eligible for service tax credit. The final response supports the views that the buyer may be liable under the reverse charge mechanism.