Service tax related

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2015 Dear Sir,

We have query for our Shipper having Export Consignment on Door-to-Door basis within India & Outside India, i.e., it Starts from India and end at USA / UK.

The Movement of Transaction is as under :-
First of all, we will do the Export Shipments of our Client and will provide them our Services related to clearing and forwarding in India and once the said material will reach to USA / UK our Overseas Agent will provide them the Services related to Clearing and Forwarding in USA / UK. After that, our Agent will raise their Invoice on us and we will in-turn will raise our Invoice on client based in USA / UK after adding our margin on it and we will receive the Foreign Bank Remittance in our Indian Bank Account from our Overseas Client, against the said Invoice.

Our Query is , we will raise the Invoice on our client for the Services rendered by us on Export related Shipments in India with Service Tax as per prevailing Service Tax Rules and we will raise our Invoice / Debit Note on Overseas Client for the value of Service rendered by our Overseas Agent on our behalf without Service Tax, will this be OK or we have to Charge the Service Tax on both the Invoices i.e., for the Service rendered within India and for the Services rendered outside India through our Overseas Agent.

Kindly guide us, as our Shipper is having the Shipments related to above and they wants to Save the Service Tax Cost for the Services rendered Outside India.

Kindly revert back at your earliest.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 June 2015 No service tax applicable on overseas agent service as it is rendered out side taxable territory.
Your client can claim refund on service tax paid on export of goods.

The Government of India issued a Notification No. 41/2012-Service Tax Dt. 29.06.2012 to enable the Exporter of Goods to claim the SERVICE TAX what ever they have paid to effect the export of goods beyond the place of removal ( Factory ) to the port of export. Now exporter of goods can get 100 % refund of service tax paid in the course of export on all the services used like Ageny Charge, Terminal Handling Charges ( THC ), Container Re-positioning Charges ( REPO ), B/L Charges, C/O Charges, Transportation, Stuffing Charges, Lashing Charges, Export Remittance Bank Collection Charges, Fumigation Charges, Loading Unloading Charges, ENS Filling, Seal Charges, Storage Charges, Survey Charges, Ground Rent Charges, Wharfage Charges, Labor Charges etc ………….. Exporter needs to simply fill up the attached FORM A1 and submit to the excise division office. There are two way to claim the service tax refund as below :- ( A) Automatic Route :- Under para 2 (d) of the above notification as under :- 2 (d) The exporter shall make a declaration in the electronic shipping bill or bill of export, to the effect that– (i) The rebate of service tax paid on the specified services is claimed as a percentage of the declared Free On Board(FOB) value of the said goods, on the basis of rate specified in the Schedule; (ii) No further rebate shall be claimed in respect of the specified services, under procedure specified in paragraph 3 or in any other manner, including on the ground that the rebate obtained is less than the service tax paid on the specified services; (iii) conditions of the notification have been fulfilled; ( B ) Paper filling Route :- Under para 3 of the above notification as under :- if you are paying more service tax with compare to specified % under para 2 as above, you must file paper refund claim under this para to get 100% refund and it is so easy as Automatic route as above. for more details kindly log on to www.refundindia.com

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2015 THANX SIR FOR GIVING SUCH VALUABLE ADVISE

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