service tax

[dhanalakshmi r]

whether service tax is applicable for ex-works charges

EXPORT FROM USA TO INDIA

AI Summary

Service tax applies to ex-works charges on imports to India under reverse charge, excluding ocean freight. A user inquired about the applicability of service tax on ex-works charges for exports from the USA to India. Respondents requested more details to provide a comprehensive response. One respondent clarified that if goods are imported to India, service tax is applicable on the entire bill amount from the freight forwarder, including ex-works charges, under the reverse charge mechanism. This is because India is considered the place of provision of service, making it a taxable territory, except for ocean freight charges. The discussion concluded after the query was sufficiently elaborated and addressed.