freight charges paid to supplier

[Asked by Guest]

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

Freight service tax liability depends on who is contractually liable to pay freight; documentation and PO terms determine responsibility.
Liability for service tax on freight is governed by who pays or is contractually liable to pay freight, including when payment is made through an agent. The Goods Transport Agency consignment note and purchase order terms identifying the person liable (consignor, consignee or GTA) determine which party bears service tax; if the consignee is designated or freight is paid by the consignee as principal, the consignee becomes liable and the supplier can escape liability.