Service tax on shipping charges

Queries 385 views 2 replies

Deeapk Sharma

PARTNER

51 Points Joined July 2013

Dear Expert Can someone please suggest if Pvt. Ltd. Co. selling goods through flipkart and charge shipping charges on bill from flipkart. Is that shipping charges is liable to service tax in India . Same in the case of export of goods he is mention shipping charges for bill to Amazon is that service tax applicable in shipping charges in case of export of goods...?

Replies (2)

Rajesh Sharma

Asst Manager-Accounts & Finance

76 Points Joined August 2007

Being Service provide you need to charges the Service tax on the Invoice Raised.Find below the language of the Service Tax law wherein it clearly mentioned-

Section 65B(44) of ST Act ‘Service’ means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include –

(a) An activity which constitutes merely,–– (i) A transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or (ii) A transaction in money or actionable claim

Hope you will found the above useful

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