Service tax on ocean freight

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This query is : Resolved

Rajkumar Gutti (Querist)

18 May 2016 We are importing & exporting trading goods ( Poultry feed supplement) from abroad.
said goods comes in India by ocean transport -Heavy Good & light goods by Air craft.

In above services can we ( Consignee-Body Corporate) are liable to pay service tax
on ocean freight ,& air craft freight. If yes on what amount, & are there any abateement for freight charges.

You are requested to guide us.

Thanking You,

Regards
Rajkumar Gutti

CA Ashish Garg

CA Ashish Garg (Expert)

19 May 2016 Presently the services of transportation of goods by an vessel or aircraft from outside India upto the customs station of clearance in India are not subject to service tax. However w.e.f. 01.06.2016, the services provided by shipping company shall be subject to service tax.

If such shipping company is outside India, than you shall be liable to pay service tax under reverse charge mechanism. Further there is an abatement of 70% on such services, thus you shall discharge your service tax liability on 30% value.

Arvind Arya

Arvind Arya (Expert)

19 May 2016 Dear ST is applicable on Sea freight only in case of import but import air freight is exempted. the rate of ST will be 4.2Basic+0.15SBC+0.15KKC

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