Ocean freight paid to a foreign liner for imports

[R. Meenakshi Ramiah]

We pay ocean freight on imports to the agencies of the foreign liners. This agent company is incorporated in India. Should we still pay service tax on ocean freight on imports under reverse charge mechanism? Please clarify

[Ganeshan Kalyani]

In my view the agent should pay service tax under forward charge.

AI Summary

Service tax reverse charge: domestic agent liable under forward charge for ocean freight paid to foreign liner agencies. Whether service tax on ocean freight paid for imports falls under reverse charge when paid to an agency of a foreign liner incorporated in India; the agent should bear service tax liability under the forward charge mechanism rather than the reverse charge, so the domestic agent receiving the payment is the taxable person.