Service tax on air import freight charges
This query is : Resolved
15 July 2013
We are a licensed international Air Cargo Forwards cum customs house agent.
We bring import Air cargo for importers in India as air cargo and collect the air freight charges in rupees. In turn these air freight charges are being paid back to our overseas principals ( freight forwarders) in foreign currency through bank At the time of remitting back these freight payments a little portion from this is being deducted by us as our profit element ad the balance is paid to the foreign principals.
Recently a service tax audit team as visited our office for audit. One of the audit officer has expressed his doubt whether the service tax has to be paid for the profit element from the import freight charges.
On verification we find that the trade does not pay service tax for this. According to few Senior trade members the same quarry was raised by the department in different service tax payment heads at some of the states and the appellate authorities had disallowed the same.
We shall be obliged if you could advice on this matter.
We bring import Air cargo for importers in India as air cargo and collect the air freight charges in rupees. In turn these air freight charges are being paid back to our overseas principals ( freight forwarders) in foreign currency through bank At the time of remitting back these freight payments a little portion from this is being deducted by us as our profit element ad the balance is paid to the foreign principals.
Recently a service tax audit team as visited our office for audit. One of the audit officer has expressed his doubt whether the service tax has to be paid for the profit element from the import freight charges.
On verification we find that the trade does not pay service tax for this. According to few Senior trade members the same quarry was raised by the department in different service tax payment heads at some of the states and the appellate authorities had disallowed the same.
We shall be obliged if you could advice on this matter.
18 April 2017
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