Service Tax Applicable for Overseas Company - Suggestion Require

[Guest]

Dear Sir,

We Singapore based company appointed Indian Freight forwarder company to pick-up a consignment from South Korea to Navasheva Port.

We will be making payment from Singapore in US$ to Indian Freight forwarder company, does we have to pay Services tax.

Freight forwarder invoice includes of Freight Charges, Ocean Port Charges, Switch Bill of Lading Charges, Documentation Fees, Custom Clearance Charges at South Korea, Transportation Charges at South Korea, Agency Fee, Charge to Collect Fee, Courier Fee.

Please suggest do we being Singapore based company liable to pay services Tax on Invoice issued by our Freight Forwarder based in India.

Please suggest, if possible pl. write Service Tax article no. for our study.

Regards,

Jeff D.

Tech Products Pte. Ltd.

Singapore

AI Summary

Debate Over Service Tax Liability on Freight Services from South Korea to India Under Finance Act, 1994 A Singapore-based company inquired whether it must pay service tax on invoices from an Indian freight forwarder for services related to a consignment from South Korea to India. Responses varied: some experts stated the Indian freight forwarder is liable for the service tax, which can be collected from the Singapore company, while others argued that the service qualifies as an export and is exempt from service tax. Additionally, it was noted that the Finance Act, 1994, does not apply to the Singapore company, as it is outside India's territorial jurisdiction.