Liability of service tax on freight

[A RAVINDRA]

As per customer's request, an item was sent to Japan for inspection purpose. Our C&F agancy has sent his bill for the reimbursement of Freight charges on account of exporting the item to japan for inspection purpose as per the requirement of customer. Are we liable to pay GTA service tax on the said freight The said transaction has occured in fy 2008-09

AI Summary

Liability for Goods Transport Agency service tax on export freight clarified; changes effective from July 7, 2009. A query was raised regarding the liability to pay Goods Transport Agency (GTA) service tax on freight charges for exporting an item to Japan for inspection, as requested by a customer, during the fiscal year 2008-09. The response clarified that as of July 7, 2009, the provisions for service tax on GTA for export transactions were modified. Previously, exporters were required to initially pay the service tax on GTA and then claim a refund.