Service tax on goods transport by vessel & aircraft

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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)
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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)
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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)
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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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