Service Tax On Import of Goods by Charter of Flight

This query is : Resolved

Vipan B Manaktala (Querist)
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27 December 2008 Sir, If an Indian Company imports goods by chartering a flight and the agent for this is outside India and payment is made to the agent by remittance in Foreign Exchange. Is Service Tax Applicable for the Importer as a receiver of service ??

Taxguy

Taxguy (Expert)
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27 December 2008 From the query, it should apply, becasue service is apparently imported.

Vipan B Manaktala

Vipan B Manaktala (Querist)
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29 December 2008 Company A - Indian Co Importer
Company B - Indian Co Agent
Company C - Not an Indian Co (Chartering of Air Flights)

Company A wants to import goods by chartering a flight thru its agent (Company B). Company B enters a contract with Company C and the goods are received in India thru Air Charter.

Company B pays Company C by Remittance in Forex and issues Debit Notes to Company A for reimbursement of Air Charter Amount (with out any additional charges). Company A re imburses the amount to Company B

Please let me know service tax liability in this case. THANKS