Service Tax on reverse charge method - reg.

[vinay wakde]

Our company is owned the Barges/Mini Bulk Carriers to bring the Raw Material & sale of finished goods through sea route.  The crew members & Master for the Barges /MBCs are provided by private limited shipping company   as per Manning contract. The shipping company is providing the service under service category “Ship Management Service”.

Kindly advise us  whether  the service provided by shipping company will be correctly falls under category “Ship Management Service” or as per the nature of the service it will be  interpreted as “Manpower supply” after 01.07.2012 and the service recipient has to pay service tax on reverse charge method.

Regards,

VINAY

AI Summary

Dispute Over Classification of Shipping Services for Tax: 'Ship Management' or 'Manpower Supply'? Key Contract Terms Matter. A company owning barges and mini bulk carriers is questioning whether services provided by a private shipping company under a manning contract should be classified as 'Ship Management Service' or 'Manpower Supply' for service tax purposes. This classification affects whether the service recipient must pay service tax under the reverse charge method after July 1, 2012. The response suggests that the classification depends on the specific terms outlined in the contract between the company and the service provider.