Service tax on freight -budget 2016

I,

  As per finance bill 2016, the negative list sec 66D(P(ii)) omitted. Kindly cinfirm, Will Service Tax applicable to Shipping line Freight?. 

Please,,

(p) services by way of transportation of goods— (i) by road except the services of— (A) a goods transportation agency; or (B) a courier agency; (ii) by an aircraft or a vessel from a place outside India to the first customs station of landing in India; or (iii) by inland waterways;

Replies (1)

Yes, service tax shall be applicable on transportation of goods by vessel from a place outside India to the first customs station of landing in India w.e.f. 01.06.2016

However you are entitle to claim abatement of 70% on the gross amount charged. Further shipping lines are entitle to avail CENVAT Credit of service tax paid on input service.

 

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