Just a moment...

⚠✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
>
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :

Print Options

+ Post an Article
Post a New Article ✕
Title :
0/200 char
Description :
Max 0 char
Category :
Co Author :

In case of Co-Author, You may provide Username as per TMI records

Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Articles

Back

All Articles

Advanced Search ❮
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
Sort By:
Relevance Date
PrevPreviousNextNext

SERVICE TAX ON WATERWAY TRANSPORTATION OF GOODS

Debtosh Dey
1620 km of Hooghly-Bhagirathi-Ganga National Waters Designated as Inland Waterways; Service Tax Exemption Since 2012. A stretch of 1620 kilometers in the Hooghly-Bhagirathi-Ganga national waters is designated as 'Inland Waterways' under the IWAI Act. Projects in these areas, including improvements for navigation and pollution control, are exempt from service tax for goods carriage since July 2012. This exemption applies to vessels entering or leaving India, with only coastal movement of goods being taxed. Previously, all waterways were taxed except for specific goods, but amendments in July 2012 altered this. Customs duty applies to import freight, and service tax is levied on activities like loading, unloading, and port services. (AI Summary)

SERVICE TAX ON WATERWAY TRANSPORTATION OF GOODS

  1. Stretch of 1620 Kms from 2.5 Kms downstream Sagar(Haldia) to 2 Kms upstream Sangam(Allahabad) in Hooghly-Bhagirathi-Ganga national waters, is notified as “Inland Waterways” under IWAI Act (effective from ’86). The project includes ‘fairway’ for sea-going vessels upto Kolkata under KoPT, dredging, broadening, new terminals, 24×7 navigation, tourism, new lock-gates, pollution control, etc.
  2. Six such projects under IWAI and other navigable inland waters within States notified under IV Act, are excluded from Service Tax for goods carriage from Jul’12. Also, vessels coming to India or going out are excluded. Only coastal movement of goods attracts tax [Note : Earlier, all waterways (inland, national and coastal) were taxed since Sep’09 barring some food items, medicines, petroleum, jute, yarn, etc. Subsequently, tax was abated by 25% from Mar’11. With Negative Listing and ‘Point Of Service’ Rules, w.e.f. Jul’12, service tax now stands amended as aforesaid].
  3. Customs duty is attracted on import freight including barge-freight. Importer can avail Cenvat on CVD element, if eligible.
  4. Service tax is attracted on vessel loading/ unloading, stevedoring and demurrage under “Port Services” as also on CHA service.

Debtosh Dey, M.Sc (Engg), FIE, C.Engg(I), FCMA, FCS, LL.B.

Service Tax
answers
Sort by
+ Add A New Reply
Hide
+ Add A New Reply
Hide
Recent Articles