TaxTMI 
TaxTMI 
EXPORTING GARMENTS FIRM , PAYING OCEAN FREIGHT ON IMPORTS AND EXPORTS. PLS GUIDE THE APPLICABILITY OF RCM FOR JULY 2017 TO TILL DATE.
ocean freight paid rcm applicability
04 Dec 2018 
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Reverse charge mechanism applies to ocean freight on imports and CIF exports, making the recipient liable for tax.
Advisory: the reverse charge mechanism applies to ocean freight paid by the exporter both for ocean freight on imported cloth and for ocean freight on CIF priced exports, relying on the statutory reverse charge provision and the notified entries treating such sea transportation services as subject to reverse charge; the forum conclusion affirms RCM applicability. (AI Summary)
Advisory: the reverse charge mechanism applies to ocean freight paid by the exporter both for ocean freight on imported cloth and for ocean freight on CIF priced exports, relying on the statutory reverse charge provision and the notified entries treating such sea transportation services as subject to reverse charge; the forum conclusion affirms RCM applicability. (AI Summary)