Service tax on goods transport by vessel & aircraft

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Querist : Anonymous

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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.

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.



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Querist : Anonymous

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

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

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Querist : Anonymous

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

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.


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