Pl confirm ocean freight 1.5 pc of total import for the period 23.04 to 30.06 of shipping bill vide not of 14151617dt 13.04.17

[nandankumar roy]

Pl confirm whether we should pay or delay as audited upto June earlier but same team came for recovery .pl help.regards n k roy 9427181604

[nandankumar roy]

THIS MATTER RELATED TO SERVICE TAX ON OCEAN FREIGHT AGST SHIPPING BILL FOR THAT PERIOD PL CONFIRM WHETHER WE SHOULD PAY OR NOT PAYABLE AS AUDIT DEPT DEMANDING 1.5PC OF CIF VALUE

[Sanketh Meri]

Dear Nandan Kumar RoyYou would have paid 1.5% deemed ocean freight cost during import as BCD and CVD. But under service tax, you will have to pay under RCM. This leads to double taxation on the Ocean Freight which is not constitutionally valid. You can either fight the case legally or pay the necessary tax and claim credit. If the amount involved is huge, please fight the case since it is not constitutionally valid to charge tax on the same item twice.

AI Summary

Double taxation on ocean freight: service tax under reverse charge overlaps deemed import duties, prompting litigation or payment with credit. The dispute involves service tax on ocean freight charged under the reverse charge mechanism for imports while a deemed ocean freight component was already treated within customs duties, creating Double taxation concerns and a challenge to constitutional validity. Taxpayers may either litigate the double taxation or pay the tax under reverse charge and seek credit or refund through statutory channels.