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 .

[KASTURI SETHI]

Govt. made it very clear. "Who pays the freight will pay Service Tax on the amount of freight availing applicable abatement during the relevant period". We are talking about Service Tax and NOT GST.

[YAGAY and SUN]

Provided, transporter had issued consignment Note(s) as prescribed in erstwhile Service Tax Laws.

[Ganeshan Kalyani]

Service Tax is payable by the person paying freight under reverse charge basis as per Notification no. 30/2012-ST as updated from timtle to time. Yes, I agree with Sri Kasturi Sir and Sri Yagay Sun for highlighting the importance of issuance of consignment note by the transporter. Thanks.

AI Summary

Service tax on freight: payer liable under reverse charge, subject to applicable abatement and consignment note requirements.
The person who pays freight is liable to pay service tax on the freight amount under the reverse charge mechanism as per the relevant notification, with the taxable amount determined after applying applicable abatement. The payer's obligation assumes the transporter has issued the prescribed consignment note(s), and compliance with those documentary requirements affects the treatment and proof of the transaction for service tax purposes.