Reverse charge under import of services by cha

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2014 A CHA is paying freight on import from the factory of seller to port in foreign currency.
After payment, he claims the amount from buyer of goods in India same amount or in many cases he added some margin and recover it from buyer of goods.

Query is : who is liable service tax under Reverse Charge :- The buyer or the CHA.

CA. Narottam Kumar Rawat

CA. Narottam Kumar Rawat (Expert)
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24 February 2014 No one is liable to pay service tax as this service fall under negative list.

Para (P)

Service by way of transportation of Goods - by an aircraft or a vessel from a place outside India upto the Customs station of Clearance in India. :)

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Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2014 Sir,

But this service is provided by road transporter not by a vessel or by aircraft.

The goods shifted from factory of seller to the custom house outside india by road.(GTA)

CA. Narottam Kumar Rawat

CA. Narottam Kumar Rawat (Expert)
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24 February 2014 In that case place of provision is destination of goods, that is port outside india. Therefore, POP is Outside taxable territory and not taxable in India.

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2014 Sir,

But sir, Under para No. 10 of Reverse Charge "Services received from Non-taxable territory
(Import of services)"
will applicable or not to the receiver of services (who is either CHA or Buyer of goods)

CA. Narottam Kumar Rawat

CA. Narottam Kumar Rawat (Expert)
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24 February 2014 See The Charging Section - 66B, Services provided in Taxable Territory are only taxable in India.

To identify whether services provided in taxable territory or not one has to go through POP Rules, in your situation is POP is Outside India i.e. Non-Taxable Territory.

Once a service is not provided in taxable territory charging section not invoke and therefore, not taxable in India.

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