Dear Sir/Madam,
we are Freight Forwarders and we charge Ocean Freight to our Exporters.
we wanted to know if Service Tax is applicable on Ocean Freight or if it is exempted under which section.
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SERVICE TAX ON OCEAN FREIGHT
Replies (4)
Ocean freight as such is not liable for ST as on date. Under valuation rules the reimbursements are includible in the value of service unless incurred as apure agent as set out in Rule 5(2). Main issue could be the adding of margins ot the amount incurred.
The valuation rules appears to be ultravires the valuation section 67 which talks about amounts collected for such services. [ we assume that is taxable services]
you mean to say the profit earned will attract service tax i.e) on buying and selling difference.
Service tax unfortunately in on the gross amount. The fact that profit is earned may lead to dept denying the claim of reimbursement. However the same as emntioned earlier is chalengable,.
ocean freight in service tax
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