OCEAN FREIGHT

[MOHAN PATEL]

IS THERE ANY LIABILITY ON OCEAN FREIGHT TO SERVICE TAX?

[CA Rachit Agarwal]

There is no service tax on ocean freight.

However, if the Ocean freight is on account of freight related to coastal goods, goods transported through national waterway or goods through inland water, then there will be service tax. Refer 65(105)(zzzzl)

AI Summary

Service Tax Not Applicable on Ocean Freight, Except for Coastal or Inland Water Transport as per Regulation A query was raised regarding the applicability of service tax on ocean freight. The response clarified that ocean freight is generally not subject to service tax. However, if the freight pertains to coastal goods, goods transported via national waterways, or inland water transport, service tax would apply as per the specified regulation.