TaxTMI 
TaxTMI 
Service Tax Applicable for Overseas Company - Suggestion Require
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....ervice Tax Applicable for Overseas Company - Suggestion Require<br> Query (Issue) Started By: - Jeff D Dated:- 13-6-2015 Last Reply Date:- 23-6-2015 Service Tax<br>Got 6 Replies<br>Service Tax<br>Dear Sir, We Singapore based company appointed Indian Freight forwarder company to pick-up a consignment from South Korea to Navasheva Port. We will be making payment from Singapore in US$ to Indian Fre....
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....ight forwarder company, does we have to pay Services tax. Freight forwarder invoice includes of Freight Charges, Ocean Port Charges, Switch Bill of Lading Charges, Documentation Fees, Custom Clearance Charges at South Korea, Transportation Charges at South Korea, Agency Fee, Charge to Collect Fee, Courier Fee. Please suggest do we being Singapore based company liable to pay services Tax on Invoi....
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....ce issued by our Freight Forwarder based in India. Please suggest, if possible pl. write Service Tax article no. for our study. Regards, Jeff D. Tech Products Pte. Ltd. Singapore Reply By Rajagopalan Ranganathan: The Reply: Since the Freight Forwarder Company is located in India service tax is payable by that company and not by you. Since the service is provided at Navasheva which is in Ind....
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....ia the service provided by the Freight Forwarder is liable to service tax and the said Freight Forwarder is liable to pay service tax. However the Freight Forwarder can collect the service tax from you under his invoice. Reply By RAMA KRISHNA KNVS: The Reply: One should refer to place of provision rules to judge on applicablity of Service tax Reply By Akash Deep: The Reply: Dear Sir, Please n....
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....ot that the place of provision of services provided by a freight forwarder is to be determined under Rule 3 of Place of provision of services Rule, 2012 and place of provision shall be singapore. Being so service tax is not leviable on the transaction and company is not liable to pay service tax on the invoices raised by freight forwarder. in fact services of freight forwarder is appears to expor....
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....t of services as per Rule 6A of the Service Tax Rules, 1994. Mr. Jaff your company is not liable to pay service tax on the invoice raised by Freight forwarder. Reply By RAMA KRISHNA KNVS: The Reply: As Mr.Akash right explained, there happen export of service. exported services are exempted. so, No service tax can be chraged by Freight forwarder. so Service tax burden on the recepient of service....
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..... good day. ram Reply By PARTHASARATHY V: The Reply: Referred service is not export of service, it is falling under Import category, the service provider (Forwarder) doing services at Korea as well as India. In the Indian port service provided by the Forwarder, such as CHA charges, Freight etc will attract the service Tax and they have to collect from the service recipient Singapore Company. ....
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....Service Provided at Korea is not coming under the ambit of the Service tax. Reply By Akash Deep: The Reply: Dear Mr. Parthsarathy, As per Rule 2(1)(d)(G) of Service tax Rules, 1994 import can happen only if service receiver is located in taxable territory and service provider is in non -taxable territory. in the instant case service receiver i.e Singapore based company is located in non-taxable....
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.... territory, so there is no question of import of services. Further, Finance Act, 1994 is not applicable to Singapore based company as it is beyond the territorial jurisdiction of the Finance Act, 1994 (Sec 64). i am sure this is not a case fit ot apply doctrine of extra territorial jurisdiction available under Constitution of India.<br> Discussion Forum - Knowledge Sharing ....