EXPORT HANDLING

[JAYA SHIPPING SERVICE]

Dear Sir,

    we are Handling of Rough Granite Blocks for Exports, From chennai port to other country,

  we like  know one clarifigation for Export hanling charges is service tax if applicable?.

 Granite blocks Handling  through Customs Notified Area CFS ( Container Fright Station). They have collecting Service Tax for Export Cargo. Please Advice Service TAX if payable?

[CA Rachit Agarwal]

Service Tax is applicable for the goods handling upto the port including handling services chargeable under the category "Port Services".

Service Tax will not be levied for material handling from port upto country of export i.e. service performed outside India as per Export Service Rules, 2005.

Service Tax receiver would be eligble for the refund of service tax for the export of goods provided that the realization proceeds in foreign currency and sales was in the course of export of goods and further subject to the notifications and services allowed for refund purpose.

AI Summary

Service tax on export handling: domestic port handling is taxable; offshore handling is not, refund possible under conditions. Handling of goods performed within India up to the port, including services at Customs notified areas and Container Freight Stations characterised as Port Services, is subject to service tax, whereas material handling performed outside India (beyond the port) is not taxable under the Export Service Rules, 2005. Service tax paid on export related handling may be refundable if the sale is in the course of export and realization is in foreign currency, subject to applicable notifications and eligibility conditions.