Service Tax liability on Air Freight to be recovered from Foreign Party

[Pradeep Jain]

Dear Sir,

We have sent abroad some sample of raw-materials for testing purpose to our overseas buyer . The Air freight amount is be paid along with Service Tax by our company. to Freight forwarder.

Now the said amount to be recovered from the Overseas buyer for this purpose we need to raise invoice / debit note.

Do we need to charge service tax for reimbursement of the said amount .

Regards

Pradeep Jain

AI Summary

Service Tax May Not Apply on Reimbursed Freight Costs if Proper Documentation is Provided, Pure Agent Concept Inapplicable A company sent raw material samples abroad for testing and paid air freight, including service tax, to a freight forwarder. The company seeks to recover this cost from their overseas buyer and inquires whether service tax should be charged on this reimbursement. Responses indicate that taxes cannot be exported, and reimbursement typically attracts service tax per the 2015 Budget. However, if supported by documentation, service tax may not apply. The Pure Agent concept is deemed inapplicable as its conditions are not met in this situation.