Liability of services on composite or bifurcated basis

[Asked by 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

Service tax on transportation: the person who pays freight bears the tax liability, even when price is composite.
Liability for service tax on transportation follows the person who pays the transporter; billing presentation is irrelevant. For FOR deliveries the buyer bears tax if the buyer pays freight; if the seller pays freight, whether shown separately or within a composite price, the seller is liable. Where the seller is an individual provider of transport, liability can shift to the goods transport agency engaged for carriage.