Service tax on goods transport by vessel & aircraft

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2014 Is service tax applicable on transportation of goods by aircraft and vessel? Pls also suggest the relevant section or notification.

Annu Agarwal

Annu Agarwal (Expert)
Follow

10 July 2014 As per Section 66D(p) of Finance Act which deals with negative list of services,
transporatation of goods by aircraft and vessel is exempted from a place OUSIDE INDIA to the customs station of clearance in India.

This means Transportation of goods by aircraft and vessel within India is Txble.

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2014 Thanks but next point to this also says that inland waterways is exempt. so its still confusing

Annu Agarwal

Annu Agarwal (Expert)
Follow

10 July 2014 Transportation of goods by vessel other than by inland waters ways(canls,backwaters & creeks ) is taxable.

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2014 Is there any clarification regarding this ? Also then why is inland waterways written in the negative list ?

Annu Agarwal

Annu Agarwal (Expert)
Follow

10 July 2014 The section 65 in itself is expalanatory.
To sum up we can say:
1.Transportation of goods by vessel ,by inland waterways & national waterways is exempt.
2.Transportation of goods by vessel,by coastal waterways is taxable.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now