Service Tax Applicable for Overseas Company - Suggestion Require

[Asked by 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

Place of provision rules determine whether cross-border freight-forwarding services attract service tax for the foreign recipient.
Liability for service tax depends on the place of provision and territorial rules: one position holds that services rendered at the Indian port by an Indian freight forwarder attract service tax payable by the provider (recoverable from the foreign recipient), while an alternative position treats the supply as export of services with the place of provision in the foreign recipient's territory, making service tax not leviable on the Singapore company. Import-of-services rules are said not to apply because the recipient is located outside India.