Applicability of service tax

This query is : Resolved

Mohan Saxena (Querist)
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10 January 2017 Dear Sir,

We are freight forwarders in India.

On a Import shipment, we are charging following charges from our overseas agent :-

Transportation Charges $160.00 (From Mumbai to Ahmedabad)
Service Charges $166.54

Please advise us, are we liable to charge any service tax on our above charges from our Overseas Agent.

Mohan Saxena

ND (Expert)
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10 January 2017 Yes, you are liable for deposit of service tax on these charges under reverse charge mechanism.

Mayur

Mayur (Expert)
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10 January 2017 Agree with ND. Except one thing for which clarification is required,

If you have to pay the charges to overseas agent, Then yes under reverse charge.
If you are charging the overseas agent (You are service provider), then under normal provisions.