service tax

[Asked by Guest]

whether service tax is applicable for ex-works charges

EXPORT FROM USA TO INDIA

[Ganeshan Kalyani]

Please elaborate your query to enable us to give you a complete reply.

[DR.MARIAPPAN GOVINDARAJAN]

As Shri Ganeshan advised please give your query in detail.

[Mahir S]

Sir,

You have not elaborated your query in detail. However, it appears the query relates to service tax liability on the ex works charges under reverse charge mechanism,

Reply to your query is as under :-

If destination of goods is India (i.e. import of goods), as in your case, then India will be place of provision of service and service tax will be payable on the entire bill amount of freight forwarder.

Therefore, in case of services of import of goods provided by freight forwarder, service tax is payable on entire charges, as place of provision of service is ‘taxable territory’ (India), and such charges shall include ex works charges , except ocean freight charges.

[KASTURI SETHI]

This query stands replied after the querist posted a detailed query.

AI Summary

Service tax on import services: applies to freight forwarder charges when place of provision is India, excluding ocean freight.
When the destination of goods is India, the place of provision is India and service tax is payable on the entire bill amount of the freight forwarder; such charges include ex works charges, except ocean freight charges, and may be subject to the reverse charge mechanism.