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Service tax on origin charges for imports


04 September 2012 Rule 8 of the Rules state that in cases, where Service provider and Service recipient are located in taxable territory i.e. India, the location of service recipient shall be the place of provision of service. Does this mean that in case of import services billed by freight forwarders, on Ex-works terms is service tax applicable for Origin charges? For ex-works imports Freight forwarder will generally split service in 3 catagories. a) Origin charges b) Freight and c) destination charges. Currenlty Service tax is applicable for (c) destination charges But Is service tax applicable for Origin charges also if both service provider and service receipent are in India.

05 September 2012 Technically speaking without going in detail of case answer is YES. If all the detail of case are provided an appropriate answer could be given


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