Service Tax Chargebility

[Rohit Gupta]

Hi

We are service providers providin global logistics services. My query here is whether we are liable to charge service tax or not in below scenario?

Scenario: In case we are doing imports for the client i.e. his goods are being brought from Foreign country to India whereby three legs of services are included viz origin services performed @ foreign country by our overseas group company ( movement till port, custom clearance, Documentation fees, etc) , Air/ocen freight and destination services in India( custom clerance , inland haulage, documentation fees, etc) and the complete payment is being received from the Importer here in India in INR. Service tax on destination services performed here in India is definitely liable and we are doing this.

Query:Whether we must charge service tax on origin services performed out of India and billed separately in our consolidated invoice?

Awaiting the response.

Thanks in advance.

Regards

ROHIT GUPTA

[Radha Arun]

The services mentioned by you (customs clearance & related documentation, transport outside India) are not taxable if performed outside India. Further, the air freight upto India is exempted under notification 9/2011-ST if customs duty is paid on that value as part of CIF value. There is no service tax currently on ocean freight. So, you can bill these as separate line items on which service tax is not charged.

(This is not legal advice, but a general response based on the information given.)

[Rohit Gupta]

Thank you

 

We are clear on ocean & air freight but only worry is in relation to services performed outside India by our overseas office (movement till port, custom clearance, Documentation fees, etc) and payment billed and collected by us here in India. We make separate line items for all services performed in our invoices. 

 

Can you please elaborate on the chargaebility of service tax in the above scenario?

AI Summary

Taxability of services performed outside India: such origin-side services are not subject to service tax when performed abroad and invoiced separately. Origin-side services performed outside India (customs clearance, documentation, transport to foreign port) are not subject to service tax and may be invoiced as separate line items without charging service tax; destination-side services performed in India remain taxable. Air freight to India is exempt when customs duty is included in CIF value under the cited notification, and ocean freight is not currently taxed.