Dear Sir,
We are a MNC manufacturing company our employees are coming from japan from deputation basis for period of three years and complete their period they returning to Japan. When they return to Japan they take some house Hold Goods from India to Japan and the freight bared by the Japan Organization further they raise invoice regarding the freight charges regarding the same and recovered from us.
My query is whether we are liable to pay the service tax on that payment or not ? Under Reverse Charge Mechanism.
Regards
Swapneswar Muduli
Multinational Firm Not Liable for Service Tax on Freight for Japanese Employees' Household Goods Under Reverse Charge Mechanism. A multinational manufacturing company queried whether it is liable to pay service tax under the Reverse Charge Mechanism for freight charges incurred when Japanese employees return to Japan with household goods. Responses clarified that no service tax is due since the freight is considered an export of goods. Reimbursements for transportation costs do not constitute a service, and thus, no tax liability arises. Additionally, the Place of Provision of Services Rules indicates that services provided outside India are not taxable. Further discussions highlighted that reimbursements might be taxable unless the service provider acts as a 'Pure Agent.' (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
