TaxTMI 
TaxTMI 
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 .
Service tax on freight
15 Apr 2018 
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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. (AI Summary)
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. (AI Summary)