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 on ocean freight: generally exempt, but coastal and inland water carriage services are taxable.
Service tax does not apply to ocean freight generally; however, freight related to coastal shipping, carriage via national waterways, or inland water transport is taxable and falls within the taxable service classification, so the route and mode of carriage determine service tax applicability.