TaxTMI 
TaxTMI 
I need to know if the activity of Freight Forwarding on export is taxable under Service Tax laws. If so under which category and on what basis.
Service tax on Freight Forwarding
11 Jul 2011 
10 Replies 
25202 Views Asked by
Service tax on freight forwarding focuses on ancillary charges, not the export air or ocean freight amount.
Service tax on export freight forwarding is confined to ancillary charges such as airway bill issuance, cartage and cargo handling services; the underlying air and ocean freight amounts are treated as non-taxable, while markups on resold freight are commonly characterized as trading margin rather than consideration for a taxable service. (AI Summary)
Service tax on export freight forwarding is confined to ancillary charges such as airway bill issuance, cartage and cargo handling services; the underlying air and ocean freight amounts are treated as non-taxable, while markups on resold freight are commonly characterized as trading margin rather than consideration for a taxable service. (AI Summary)