Service tax on freight

[MANASH MUKHERJEE]

A registered dealer of Tata Motors was paying service tax on maintainence and reparing service, but what will be his service tax liability on the freight that has been paid by them to the trasporter for trasporting vehicles from company to their premises .

AI Summary

Tata Motors Dealer Liable for Service Tax on Freight Under Reverse Charge Mechanism per Notification 30/2012-ST A registered dealer of Tata Motors inquired about their service tax liability on freight paid to transport vehicles from the company to their premises. Responses clarified that the service tax is payable by the entity paying the freight, utilizing applicable abatements, as per the service tax laws in place before GST. The transporter must issue consignment notes, and the liability falls under the reverse charge mechanism according to Notification no. 30/2012-ST. The discussion emphasized the importance of adhering to these requirements for compliance.