Import freight through vessele @ 4.5%

Service Tax (Legacy) 532 views 2 replies
Sir, need clarification regaring input credit and availment of import freight through vessele @ 4.5%. We are clearing the materials on behalf of our client and our creditors charged import sea freight @ 4.5% and confirm at the time of billingto end client whether we can recover the same or not
Replies (2)

In case of services of import of goods provided by freight forwarder, service tax is payable on entire charges, as place of provision of service is ‘taxable territory’ (India). The charges include ocean freight also.

Ocean freight from a place outside India up to the first customs station of landing in India is not subject to service tax as it is in negative list of services as per section 66D (p) of Finance Act, 1994.Hence, it may be advisable to split the contract into three – one outside India (as intermediary), second ocean freight (actual basis) and third services within India.

Exemption to transportation of food stuff by vessels will be limited to food grains including rice and pulses, flour, milk and salt. For transport by vessel , Service Tax shall be payable on 30% of the value of such service subject to a uniform condition of non-availment of Cenvat Credit on inputs, capital goods and input services with effect from 1st April 2015 for transportation of goods by vessel within India including Ocean Freight.

NO, SERVICE TAX SHALL NOT BE APPLICABLE IN CASE GOODS ARE TRANSPORTED BY

  1. AN AIRCRAFT OR A VESSEL FROM A PLACE OUTSIDE INDIA TO THE FIRST CUSTOMS STATION OF LANDING IN INDIA.

Dear sir,

cenvat credit admisable or not admisable on ocean fright 4.2% service tax 

pl suggest me.

 


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