service tax on ocean freight charged by a freight forwarding company

[Sanjeev Sharma]

Whether service tax applicable on charging of ocean freight by a freight forwarding company in India ? Please note that it charges ocean freight as per rates negotiated with the clients . Shippling lines in turn raises bills on the freight forwarding company. The difference is the margin of freight forwarding co.

AI Summary

Debate on Service Tax Applicability for Ocean Freight by Indian Forwarding Agents Under Section 66D of Finance Act. A discussion on whether service tax applies to ocean freight charged by a freight forwarding company in India. The freight forwarding company negotiates rates with clients and pays shipping lines, retaining the difference as profit. One participant suggests that the forwarding agent should pay service tax on the entire amount charged to clients, taking credit for the tax paid by shipping lines. Another participant clarifies that shipping lines are not liable for service tax on foreign freight, but forwarding agents must determine if they act as pure agents to claim reimbursement benefits.