Service Tax on Goods Transport Agency

[Ashok Chopra]

Freight charged more than Rs. 1500/- on the invoice and neither supplier of the goods is a factory and registered under service tax nor transporter is registered under Service Tax.   Does it my liability to pay service tax on the freight charged on the bill by supplier of the goods? i am a company and registered under service tax 

 

Pls advice accordingly

AI Summary

Company Not Liable for Service Tax on Freight; Supplier Pays, Not a Factory, Per Service Tax Rules 2012. A company registered under service tax inquired about its liability to pay service tax on freight charges exceeding Rs. 1500, where neither the supplier nor the transporter is registered under service tax. The supplier pays the freight. Responses clarified that, according to the Service Tax Rules effective from July 1, 2012, if the freight payer does not fall under specified categories like a factory or registered society, the service tax liability falls on the transporter, not the recipient of the goods. Since the supplier pays the freight and is not a factory, the company is not liable for the service tax.