Reverse Charge

[Ashok Chopra]

Respected Forum,

My company is receiving goods from party in full load truck.

Payment of freight is made to transporter by party, both transporter and party are a proprietory company

Party charging freight from me in the bill as 'Cartage', which i am booking as 'Cartage Inward'.

Please guide me:-

Whether i am liable to pay service tax on the cartage, which is charged from me by the party?

if yes, pls let me know w.e.f. 01-07-2012 i have not paid Service Tax on it, should i pay arrear with interest and whether i will be liable to take credit of said amount?

pls provide me copy of notification and clarifications of the department for my record purpose

please guide me accordingly

 

AI Summary

Company Questions Service Tax on Freight Charges Labeled as 'Cartage' on Invoices Since July 2012 A company is receiving goods via full-load trucks, with freight paid by the supplier to the transporter. The supplier, a proprietorship, charges this freight as 'Cartage' on the invoice, which the company records as 'Cartage Inward.' The company seeks advice on whether it must pay service tax on this cartage since July 1, 2012, and if arrears with interest should be paid. A respondent advises that if the transporter does not provide a bill, the supplier or transporter should handle the service tax. The company should record the entire amount as purchase value, not as 'Carriage Inward,' to avoid service tax liability.