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Relief in Part service

Pinky Agarwal (Chartered Accountant) (426 Points)

24 March 2011

What will be the implication of service tax in case where part service provided in india and part in outside india i.e. Suppose if transportation service is provided by an indian barge suppliers to an indian company for transporting goods through waterways from india to outside india. Transpotation is through kolkata port to any other port outside india then half water is in india and half of outside india. Whether any relief will be available like service tax is to be paid on only half amount???

Plss Reply...

Regards,

Pinky Agarwal.

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7 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 24 March 2011

service tax is applicable if the payment is made in india, otherwise not.

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 24 March 2011

Thank you sir...

But can u plss giv me the reason?

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 24 March 2011

services can not be marked for indian ocean and foreign ocean as the steamer/ barge/ship is same and its paid at certain point for full course of journey,

just like the airfare from india to london, the tickets booked in india attract indian taxes, irrespective of the airlines country, if the tickets are booked in india ten the taxes would be applicable in india, if booked in london, then taxes are applicable as per london.

they can not charge half from india and half from london. place of payment is important.

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 24 March 2011

Thank u so much sir...

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 24 March 2011

welcome,

one more thing to add, if the service is availed in course of export of goods out of india, and payment of such export is received in india in foreign exchange, then whole the service tax paid on such tranport is refundable.

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 24 March 2011

Originally posted by : U S Sharma
	welcome, one more thing to add, if the service is availed in course of export of goods out of india, and payment of such export is received in india in foreign exchange, then whole the service tax paid on such tranport is refundable.