Applicability on freight forwarders


01 May 2010

It has come to notice that different freight forwarding companies are folowing different rules regarding applicability of service tax.

Please clarify follows:

1. Any charges billed in India for services provided either in India or overseas in subject to service tax except charges charged under HEAD :"OCEAN FREIGHT"

2. ALL Charges other than 'ocean freight' billed overseas for services provided in India is subject to service tax.

3. All charges for Import shipments charged to a consignee or a forwarder INCLUDING 'OCEAN FREIGHT' if billed in India is subject to Service Tax.

There are a lot of confusions in this subject and companies are either flouting the rules unknowingly or not getting paid by customers as there are no uniformity on this.

This is to draw attention of the experts and also the authorities and the author is willing to give all necessary support in research and/or other requirements in this field.
Mention of relevant sections of the law or any clarification issued by the department will be appreciated.

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