TMI BlogIssues related to levy of service tax on the services provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India to the customs station in IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... Goods and Service Tax/System/CEI Director General of Audit/Tax Payer Services, Principal Commissioners/ Commissioners of Customs and Central Excise (All) Principal Commissioners/Commissioners of Central Excise and Service Tax (All) Principal Commissioners/Commissioners of Service Tax (All) Principal Commissioners/Commissioners LTU/Central excise/Service Tax (Audit) Sub:- Issues related to levy of service tax on the services provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India to the customs station in India - reg. Madam/Sir, Your kind attention is invited to notification No. 1/2017-ST dated 12th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ign shipping line to a foreign charterer with respect to goods destined for India. This change shall come into effect from 23rd April, 2017. 2.2 Vide notification No. 13/2017-ST dated 13th April, 2017 , the person liable to pay service tax has been provided an alternate mechanism for calculating and paying service tax. Swachh Bharat Cess and Krishi kalyan Cess will be paid accordingly. This option has been made available with effect from 22nd January, 2017. 2.3 Vide notification No. 14/2017-ST dated 13th April, 2017 , the point of taxation of services provided by a foreign shipping line to foreign charterer with respect to goods destined for India, has been specified as the date of bill of lading of goods in the vessel at the port o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70% of value of services of transportation of goods in a vessel subject to the fulfillment of the condition that Cenvat credit on inputs and capital goods used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 . This conditional exemption has been extended for the reason that out of the full value of such services, the exempted value of service has already suffered taxes (Central Excise) which would have been available as Cenvat credit to set off service tax on full value of service. In effect, service tax is levied on the value added only. However, in case of foreign shipping lines, their services being exports from their home country, are zero-rated in their home country and thus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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