Liability of services on composite or bifurcated basis

[Guest]

The basis of procurement of any material is FOR basis.Whether there is any liability of service tax involved wrt transportation element involded in the rate to the seller or the buyer if a)the rate is divided in cost of material & transportation charges b)there is single composite rate for the supply of material.

AI Summary

Responsibility for Service Tax on FOR Basis: Paying Transporter Means Bearing Tax Liability, Seller Typically Liable Unless Individual. A discussion on service tax liability for transportation in transactions on an FOR basis generated three responses. The consensus is that the party paying the transporter bears the service tax responsibility. If the rate is divided into material and transportation charges, or if there is a single composite rate, the seller remains liable if they pay the freight. If delivery is to the buyer's location, the seller is liable; however, if the seller is an individual, the liability may shift to the Goods Transport Agency (GTA).