TaxTMI 
TaxTMI 
Service Tax liability on ocean freight
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....ervice Tax liability on ocean freight<br> Query (Issue) Started By: - Yatin Bhopi Dated:- 28-8-2014 Last Reply Date:- 5-9-2014 Service Tax<br>Got 4 Replies<br>Service Tax<br>We are manufacturer. We regularly import our raw material from various countries. Normally terms are FOB at loading port. We pay the freight to shipping line company (in $ USD) and insurance to Insurance company from loading ....
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....port to Indian port . Are we liable to pay service tax on reverse charge basis on freight paid to shipping line company? Reply By PAWAN KUMAR: The Reply: Dear Sir, As per my view, service tax is not liable on ocean freight paid to shipping line company under reverse charge mechanism. Reply By Pradeep Khatri: The Reply: Dear Yatin, Sea freight for goods from outside India to first customs st....
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....ation of clearance in India not taxable. Sea freight for goods from India to outside India not taxable, since per rule 10 of Place of Provision of Service Rules, Place of Provision of Service is outside India. This is for your kind information. Regards YAGAY and SUN (Management and Indirect Tax Consultants) Reply By Rajagopalan Ranganathan: The Reply: Sir, Service by way of transportation o....
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....f goods by an air craft or vessel from a place outside India upto the customs station of clearance in India is included under Section 66D (p) (ii) of Finance Act, 1994, that is negative list. therefore the said service is not liable to service tax. Reply By Arun Kumar Singh: The Reply: If you are paying freight charges separately and service tax will not be applicable then you need to pay servic....
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....e tax.<br> Discussion Forum - Knowledge Sharing ....