Applicability of service tax under rcm on ocean freight

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2017 As per Notification No. 16/2017-Service Tax , importer is liable under reverse charge to service tax on ocean freight for CIF contract.
I have to query regarding this:
1. what will the value of service on which service tax will be calculated?
2. Whether Service tax paid by the importer is eligible to book Credit by importer and whether importer can utilize this credit to discharge his service tax liability on the following services:
a. Renting of immovable property
b. Business auxiliary service
c. Legal and professional services

Please resolve the above queries.

Thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 May 2017 1 15% service tax payable on 30% value freight charges.
2 Input credit on such unrelated out put service can't be taken.

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2017 but sir we dont have value of freight as our contract from exporter on cif basis .
Value of freight is not mentioned any where either on bill of lading and bill of exchange.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 May 2017 Get freight bill from foreign exporter.

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2017 Please tell , if any other opinion have

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2017 Your bill of entry will contain freight break up Check. You can get freight charges from shipping company referring bill of lading No and date.

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