Service tax on import of Service

[Asked by Guest]

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

AI Summary

Service tax on import of services: reimbursements for foreign employee freight typically not taxable where no service received in India
Whether service tax applies to reimbursement of freight for household goods shipped by deputed foreign employees depends on who received the service and where it was provided. International carriage destined outside India is treated as provided outside India, so freight paid by the foreign organisation and recovered from the Indian affiliate is ordinarily not taxable or subject to reverse charge. Domestic legs of transport remain taxable in India, household goods freight is not exempt by default, and reimbursements may be taxable unless demonstrably paid as a pure agent.