Service tax on demurage
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 May 2013
Whether Service Tax applicable on Demurage?
Example:
We import some material and Lay time given in contract to unload the Ship with in 5 day(Say in Paradip Port).if we unload the material from Ship with in 4 days then exporter give us 1 day Demurage (Despatch Earning) in USD on the basis of our Debit Note.
Question: Whether we charge Service Tax in Debit note which raise to Exporter? If so in which Service Tax Rull?
Example:
We import some material and Lay time given in contract to unload the Ship with in 5 day(Say in Paradip Port).if we unload the material from Ship with in 4 days then exporter give us 1 day Demurage (Despatch Earning) in USD on the basis of our Debit Note.
Question: Whether we charge Service Tax in Debit note which raise to Exporter? If so in which Service Tax Rull?
29 May 2013
service tax is not applicable if you are claiming these demurrage charges seperate invoice/debitnote
Generally in these cases c&f agent will give bills two type
one seperate bill for agency charges
and one bill for re-imbursemnet of expences incurred which includes demurrage charges also
if c& f agent provide seperate bill for re-imbursement expences no servicetax is required
Please refer below link, for some detailed clarification
https://www.caclubindia.com/experts/service-tax-on-reimbursement-of-expenses-1310799.asp
And you can refer this article for latest case law analysics with which we can say
Servicetax is not applicable on re-imbursement of expences
https://www.caclubindia.com/articles/reimbursement-of-expenses-not-subject-to-service-tax--15929.asp
Generally in these cases c&f agent will give bills two type
one seperate bill for agency charges
and one bill for re-imbursemnet of expences incurred which includes demurrage charges also
if c& f agent provide seperate bill for re-imbursement expences no servicetax is required
Please refer below link, for some detailed clarification
https://www.caclubindia.com/experts/service-tax-on-reimbursement-of-expenses-1310799.asp
And you can refer this article for latest case law analysics with which we can say
Servicetax is not applicable on re-imbursement of expences
https://www.caclubindia.com/articles/reimbursement-of-expenses-not-subject-to-service-tax--15929.asp
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