freight charges paid to supplier

[manoj raut]

Dear expert

I was received one invoice( duplicate for transport).  detail as follows.

Assessable value -  40000/-

Excise duty    12.36-    4944/-

Total                       -   44944/-

Freight                    -     2500/-

G. Total                  -   47444/-

I was paid full amount to supplier Rs. 47444/- can i lible to service tax on Rs. 2500/- on Freight .

Please guide.

Regards

Manoj Raut       

AI Summary

Who Pays Service Tax on Reimbursed Freight Charges? Liability Depends on Purchase Order and Consignment Terms. A query was raised about the liability for service tax on freight charges reimbursed to a supplier. The discussion involved determining whether the buyer is responsible for the service tax on freight of Rs. 2,500 included in a total invoice of Rs. 47,444. Responses highlighted that if the freight is reimbursed to the supplier and not paid directly to the transporter, the buyer might not be liable. The liability depends on the terms in the Purchase Order and the Consignment Note. If the consignee is specified as liable, the supplier can avoid the tax obligation.