Service tax on export ocean freight

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can service tax is applicable on ocean freight in case of export, please guide us
Replies (3)

No, place of provision would be outside India.

In the case of transportation of goods, place of provision would be destination of goods except by mail or courier or by GTA under rule 10 of Place of Provision of Services Rules, 2012.

So, in the case of export, place of provision would be destination of goods i.e. outside the taxable territory. So, service tax would not be leviable under section 66B.

It may be noted that for the person who is providing such transportation services may avail credit of input services as the transportation of goods from custom port station to outside India by Vessel has been excluded from the defination of Exempt Services under Rule 2 of CCR, 2004 vide budget 2016.

Originally posted by : rajkumar gutti
can service tax is applicable on ocean freight in case of export, please guide us

No , ST is not applicable

 

Regards

Karanjit Singh

+91-7503588224


CCI Pro

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