Servce tax query

Dear CCI members

Request your guidance in relation to my below query.

Quey : We are providing global logistics services to our customers. In case of exports, goods are picked from shipper factory in India and transported to somewhere overseas.This include three legs of services viz Origin services (performed here in India) , Air/Ocean transport (main freight charges ) & destination charges (performed in overseas like clearance, transportation to consignee's place, loading & unloading , etc ). The total invoice is raised here in India on the Shipper.

 

My query is regarding under new Service tax provisions post Negative lists of services and Place of provision of Supply of services, whether destination charges  in case of export  is liable to service tax or is it exempt from service tax ?

 

Thanks in advance

 

CA. Rohit Gupta

Replies (2)

As per rule 8 to POP Rules, if both provider of service and receiver of service  are located in India, the place of provision of service shall be in India. Hence the service is liable to tax.

Thanks Mr Nair

 

But I think here it is Rule 10 of the POP rules will apply. ( i.e. Transportation of goods )

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