Import newspapers and magazines

[MITSUI PRIME ADVANCED]

Dear Sir,

We have receive import of Magazines International pallets price news paper weekly ( total commercial magazines)

Import of service from outside India. ( Magazines received through mail in India )

Kindly advice to me service tax applicable or not.

Thanks and Regards

Arjun Sachdeva

[YAGAY andSUN]

On imported newspaper and on magazine, service tax is not applicable since both the items fall under the category of goods.

[Mahir S]

Mr. Arjun ji,

You have raised a very interesting issue.

As per section 65B(44) of Finance Act, 1994, "service" means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include -

(a) an activity which constitutes merely,––

(i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or

(ii) such transfer, delivery or supply of any goods which is deemed to be a sale within the meaning of clause (29A) of Article 366 of the Constitution; or..

In view of above, as there is only sale and purchase of magazines thus falling under category of deliver or supply of any goods for sale; therefore such activity cannot be termed as "Service" and hence no service tax applicable thereon.

 

[Akash Deep]

Dear Arjun,

it is no doubt that service tax is not applicable on import of news paper and magzines as they are goods. i think that by news paper you mean newsprint (paper on which news paper got published). how ever service tax would be applicable on the services received from the mailing agency (the person who is actually transporting newsprint outside India to in India.). problem is not simple as it looked.

[YAGAY andSUN]

Dear Arjun,

There is no tax on Ocean Freight and Air Freight on goods imported into India from outside India. Further, under GTA services, Newspapers/Magazine are also exempted from the levy of Service Tax (if registered with the registrar of newspaper.)

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Classification of imported goods: newspapers and magazines treated as goods, not subject to service tax; transport services may be taxable Imported newspapers and magazines are treated as the supply and delivery of goods and therefore are not subject to service tax as they fall outside the definition of taxable services; however, separate services such as mailing or transport provided in connection with those imports can be taxable, while ocean and air freight on imported goods and certain transport or registered-newspaper exemptions may remove levy on those specific services.