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Service tax on ocean freight-on import export transportation of goods by Sea

Service Tax - Started By: - Narendra Soni - Dated:- 1-3-2016 Last Replied Date:- 15-11-2016 - Dear Experts,Service tax has been introduced on inward & outward transportation of goods by Sea. Kindly confirm Is service tax now payable on Ocean freight paid to shipping and air lines ?? - Reply By Narendra Soni - The Reply = Dear TMI Experts, Awaiting your views, Please refer union Budget 2016-17,Servicee tax on transportation of goods by vessel from India to out side India and from out side Ind .....

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Ranganathan - The Reply = Sir, In para 4.1 (C) of the D. O. Letter of Joint Secretary to Govt. of India, namely D.O.F. No.334/8/2016-TRU dated 29.02.2016 it is clarified that the entry in the Negative List that covers services by way of transportation of goods by an aircraft or a vessel from a place outside India up to the customs station of clearance [section 66D (p)(ii)] is proposed to be omitted with effect from 1.06.2016. Clause 146 of Finance Bill 2016 may please be seen in this regard. Ho .....

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ith the Indian manufacturer or service provider availing such services (subject to fulfillment of the other existing conditions). It is clarified that service tax levied on such services shall not be part of value for custom duty purposes. In addition, Cenvat credit of eligible inputs, capital goods and input services is being allowed for providing the service by way of transportation of goods by a vessel from the customs station of clearance in India to a place outside India. Consequential amen .....

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service tax is applicable on OCEAN FREIGHT payable to s/line or freight forwarders paid for export & Import container shipment by Vessel.Kindly confirm whether POT/POP is applicable. - Reply By Narendra Soni - The Reply = Dear Experts, For more clarity, we re-producing relevant portion of Budget, now please confirm whether ocean freight paid to shipping line for transportation of Import & Export goods by vessel is liable for service tax. Service by way of transportation of goods by a ves .....

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agopalan Ranganathan - The Reply = Sir, section 66D (p)(ii) will be omitted with effect from 01.06.2016. Therefore till 01.06.2016 services by way of transportation of goods by an aircraft or a vessel from a place outside India up to the customs station of clearance is not liable to service tax (vide Annexure-1 enclosed with D. O. letter D.O.F. No. 334/8/2016-TRU dated 29.02.2016 of Joint Secretary to Govt. of India. Services by way of transportation of goods by an aircraft from a place outside .....

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o fresh provision is being made in this regard, as it is already covered by Place of Provision of Service Rules.). As per rule 3 of Place of Provision of Service rules, 2012 the place of provision of a service shall be the location of the recipient of service. In view of the above ocean freight paid to shipping line for transportation of Import & Export goods by vessel is liable for service tax. But this liability arises only from 01.06.2016. - Reply By Ganeshan Kalyani - The Reply = I shall .....

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to pay the tax. Thanks. - Reply By Naveen Bohra - The Reply = Dear ExpertsI have some queriesBeing a freight forwarder I am giving service to my overseas clients where I am taking ocean freight service from Malaysia/ Singapore based shipping lines & paying them in USD & then invoice it to clients in Malaysia again in USD with my value addition.The goods are exported to India from Malaysia so as a freight forwarder do I need to pay service tax on the same under new rule. If yes on which .....

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t under Negative list omitted in the present Budget resulting that they are liable for Service Tax. However, For Air freight, exemption was provided by inserting a new entry in the Mega Exemption Notification No. 25/2012-ST Ocean Freight having not covered under the above exemption, it is made liable for Service Tax on imported goods Hence, the ocean freight having borne by the importer on the imported consignments, the importer being the recipient, liable to pay the Service Tax under Reverse ch .....

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may be issued on or before 1.6.2016 or after the Finance Bill get the assent of the Hon'ble President . Unfortunately, there are divergent view on this in various judgments where some are in favour of the assessee and some are in favour of the revenue. Very recently, the AAR while giving its ruling considered the view of certain appellate decisions wherein it was stated that there is no such restriction in the law to tax the same amount under different statutes, held that in the case of an .....

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er will have to pay both Customs duties and Service Tax on the ocean freight incurred on the imported consignments. Hope this clarifies your query. Best Regards Suryanarayana - Reply By MAHA LINGAM - The Reply = Dear Experts,Thanks for your patience & elaborate reply for our queries. I am from a freight forwarding company in Chennai & we have regular import / export shipments. We need to clarify few points with regard to the new S.Tax implementation on inward/outward freight charges. We .....

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. So, we dont need to worry about about the Shipment terms in that matter. Is it correct?3. As per the post submitted by Mr. Rajagopalan Ranganathan on 04-03-2016, he mentioned OCEAN FREIGHT PAID TO SHIPPING LINE FOR TRANSPORTATION IMPORT & EXPORT is liable for Service Tax. Is it right? We aren't charged service tax for any of our export shipments till date. Pls clarify. IF AT ALL APPLICABLE, WHAT ABOUT OUR ORIGIN CHARGES? DO WE NEED TO CHARGE FOR THOSE HEADINGS TOO?Pls clarify us.Regard .....

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