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Transport of goods by Vessel under reverse charge basis - Service Tax w.e.f 01.06.2016

Service Tax - Started By: - SANDESH SHINDE - Dated:- 30-5-2016 Last Replied Date:- 1-6-2016 - Dear Sir, Please advise in detail on the point - Whereas such services are provided by the foreign shipping line, then the service tax will be paid by the business entity located in India under reverse charge. Request you to please advise us when such leviablity will be there under reverse charge basis when the service provider (foreign shipping co.) where import is carried out on CIF value or FOB value .....

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Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, CIF means cost, insurance and freight. It means insurance and freight is borne by the importer. Whereas FOB is free on board meaning only cost of goods is paid for. Further for service tax liability under reverse charge on import of service there no such criteria that tax should be paid in CIF or on FOB. It will be paid on the Value of Service availed if any. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sir, in Bill of Entry such detail .....

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I endorse the views expressed in all the replies by Sh.Ganeshan Kalyani, Sir. I further add that regarding the interpretation of the term, 'FOB', the querist may go in detail in the book advised by Sh.Kalyani, Sir. - Reply By KASTURI SETHI - The Reply = In this context, para no.4.1 (C) -Negative List of TRU letter No.334/8/2016-TRU dated 29.2.16 is worth reading. The domestic shipping lines registered in India will pay service tax under forward charge while the services availed from for .....

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es 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 amendments are being made in Cenvat Credit Rules, 2004 [Not. No. 23/2004-C.E. (N.T.), as amended by Sl. Nos. 2(b) and 5(h) of notification No. 13/2016-C.E. (N.T.) dated refers. ] (Clause 146 of the Bill refers) - Reply By KASTURI SETHI - The Reply = FOB and CIF are types of contract for international sale of goods, and .....

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