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

AI Summary

Service Tax on Ocean Freight: Agent Company to Pay Under Forward Charge, Not Reverse Charge A query was raised about the obligation to pay service tax on ocean freight for imports paid to foreign liner agencies incorporated in India. The question specifically asked whether the service tax should be paid under the reverse charge mechanism. The response provided suggested that the agent company should be responsible for paying the service tax under the forward charge mechanism instead.