Service Tax on Nepal export

[Gajendra Singh]

Dears

Sir,

We have export the writing printing paper to nepal. The freight paid by our consignee situated in nepal. I want to know that who is liable to pay the service tax on freight paid by consignee.

thanks & regards.

Gajendra Singh

[YAGAY andSUN]

Since the amount of freight have been paid by the consignee, therefore, you are not liable to pay service tax on this freight amount.

[rajkumar shukla]

I fully agree with views of sri pradeep khatri.

 

[NEERAJ KUMAR, RANCHI]

Liability to service tax in case of GTA is on the receipients of services, Receipients of services is one who pays the bill, in your case since the bill is paid by the consignee the liability is on the consignee only, now since the consignee is in Nepal, Therefore no one is liable to S Tax, in my view.

[Guest]

Service tax applicable only when the services are received in India. Here service are not received in india.Hence there is no service tax liability arise

 

[Ramesh V]

 liability to pay service tax

• Generally, A person providing the service is liable to pay service tax. There is an exception to the above.
•  Rule 2(1)(d) of the service tax rules, specified some cases where service provider does not pay service tax.
• (a) Services provided by a goods transport agency for transport of goods by road:-Specied consignor/Consignee who pays or liable to pay freight shall pay service tax.

           Specifiedconsignor/consignee includes: (i) Facroty,(ii)Company,(iii)Corporation,(iv)Society,(v)co-operative society,(vi)registered dealer of excisable goods,(vii)body corporate(viii)partnership firm.

1. In the present case, Mr.Gagendra singh is not liable to pay service tax.

2. First ask : is  the consignor/consignee in Nepal is relating  the above category of consignee?. If the answer is Yes, then the consignor/consignee in Nepal need to pay the service tax to the Department. 

[rajkumar shukla]

 Does the Finance Act, 1994, apply to Nepal? if not ,how the Tax will be paid?

AI Summary

Service tax liability: recipient-pays freight triggers payer liability; services received outside India avoid Indian service tax. Where the consignee abroad pays freight for road transport, the recipient who pays the bill is liable under the GTA-related allocation of service tax; if the service is received outside India because the consignee is abroad, no service tax arises in India and the consignor who exported the goods is not liable.