Service Tax on Air Freight Charges

[RAJENDRA KHOMNE]

Dear Sir, Good Morning,

We have purchase imported material from dealer and he charged Air Freight charges in bill. Our query is, Is Service Tax Reverse Charges Mechanism applicable for Air Freight Charges? Pl guide.

Thanks,

Khomne R. M.

YESHSHREE PRESS COMPS PVT. LTD.

AI Summary

Reverse Charge Mechanism Does Not Apply to Air Freight Charges, Only to Goods Transport Agency Services, per Notification 30/2012-ST. A query was raised regarding the applicability of the Service Tax Reverse Charge Mechanism on air freight charges for imported materials. Three experts responded, clarifying that the reverse charge mechanism applies only to Goods Transport Agency services and not to air freight charges. They referenced Notification No. 30/2012-ST, indicating that air freight is not listed under services liable for reverse charge. One expert added that if the importer had paid service tax, it would be included in the bill, and the buyer would handle it accordingly. The discussion emphasized the importance of understanding specific tax notifications.