Service tax on Air freight recovered by freight & forwarder
my query is:
If a Freight and forwarder provides pickup, clearing & freight service (from/to india) to client and recover the same thru his invoice.
If the entire sum recovered on account of freight is transferred to holding company abroad.
is the same liable to service tax
Kindly specify the transaction with exact details as I think domestic and import/export is getting mixed up
Please site an example for addressing your enquiry
1.What is the transaction?
2.What is the significance of this transfer?
3. Holding company of the provider of services?
The Rules divide the service into 3 categories and consider services as export of services subject to certain conditions:
1) Taxable services is said to be exported if the immovable property is situated outside India.
2) Service is exported when the services are performed outside India. Part performance outside India is also permitted.
3) whether or not performed outside India shall be treated as taxable service performed outside India.
C&F Agent is coming under the 2 point.