Service tax on ocean freight for export

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Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2016 Dear Expert,

According to which service tax provisions, Ocean freight for export is exempt.

Where this amount is to be shown in service tax return.

Thanks & Regards.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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24 March 2016 The entry in the Negative List covers services by way of transportation of goods by an aircraft or a vessel from a place outside India up to the customs station of clearance [section 66D (p)(ii)] and thus ocean freight is not taxable.The clause is however proposed to be omitted with effect from 1.06.2016 vide Union Budget 2016.

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2016 Transportation of Goods by aircraft or vessel from place in india to place outside india.

How and under which provisions this service is exempt.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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24 March 2016 Please refer to POPS Rule 10 where place of provision in respect of goods transportation is destination of goods. Hence when goods are exported destination of goods being in a foreign country service is provided in a non-taxable territory and hence exempt.

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