service tax on frieght (forien)

For an exporter, the term is either C&F (Cost & Freight) with responsibility upto ship railing at destination port, or FOB + Freight upto ship railing at destination port. If the exporter has transacted as per the latter and collected ocean freight seperately it is a part of the sales turnover of the exporter and exporter is not a transporter as far as service tax is concerned. The excess realisation could have occurred on account of exchange fluctuations. Freight is in Dollars and paid in Rupees. The exporter may have billed in another currency. If the excess received is on account of this, then adjust the exchange gains accordingly. However, if more freight has been billed in US$ than what has been paid, the excess is included in your turnover of sales as a profit.