Service tax

Queries 556 views 2 replies

An indian customer has appointed me to do customs clearance and freight forwarding to a customer in Denmark. I am an indian Company providing local customs clearance and then freight forwarding to Denmark. I authorize another company in Denmark do customs clearance in Denmark and then deliver the goods in demark customers place. 

Now i raise invoice for all the services rendered by me and by the Denmark clearing agent to this indian customer. And then Denmark customer in turn raises invoice for me. Should i charge service tax for the services rendered by Denmark Agent to my indian Customer

Replies (2)
Since place of provision of service is outside India, no service tax is payable
It appears to be complex situation...however I would attempt to answer with certain assumptions...if denmark agent raised invoice under name of your company and if it involves profit margin it shall not amount to pure agency. Hence whole of the amount charged by yur company to indian customer shall be taxable. Regarding invoice rsised by denmark agent to yur company same shall not be taxable in terms of rule 4.


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