TaxTMI 
TaxTMI 
I am a manufacturing unit. I have issued a excise invoice and charge freight seperately on the invoice. i have collected 12 lac as freight from customer and paid to GTA ₹ 10 lac. ₹ 2 lac is my income. Neither i have charged any excise duty nor service tax on ₹ 12 lac. Now my question is whether i am liable to pay service tax and if required then at what about and under what circumstances.
SERVICE TAX ON FREIGHT COLLECTED FROM CUSTOMER
20 May 2017 
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Service tax on freight: payer may be liable under reverse charge on the full freight collected, not only carrier payment.
The querist paid a carrier under the reverse charge mechanism and retained profit on freight charged to customers; commentators dispute whether tax applies only to the amount paid to the carrier or to the entire freight collected, noting that central excise precedents exclude profit for excise valuation but service tax valuation may treat the full freight or additional consideration as part of the taxable value and expose the service recipient to liability and recovery action. (AI Summary)
The querist paid a carrier under the reverse charge mechanism and retained profit on freight charged to customers; commentators dispute whether tax applies only to the amount paid to the carrier or to the entire freight collected, noting that central excise precedents exclude profit for excise valuation but service tax valuation may treat the full freight or additional consideration as part of the taxable value and expose the service recipient to liability and recovery action. (AI Summary)