We are imported some goods through a logistics company of india. The said company made all arrangent for clearing of goods in india( custom duty or other exp).we are reimburse all expenses for clearing of goods.we are also reimburse ocean freight to said company.The logistics company raised bills and also charge service tax on his service which not including of ocean freight. The said company raised separetaly invoice for ocean freight and same reimburse by us. The logistics company paid ocean freight to foreign freight forwarder in usd currency. In this circumstance who is resposible for service tax on ocean freight.
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who is liable service tax on ocean freight
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| Originally posted by :Akshay Kumar Purohit | ||
| " | We are exported some goods through a logistics company of india. The said company made all arrangent for clearing of goods in USA( custom duty or other exp).we are reimburse all expenses for clearing of goods.we are also reimburse ocean freight to said company.The logistics company raised bills and also charge service tax on his service which not including of ocean freight. The said company raised separetaly invoice for ocean freight and same reimburse by us. The logistics company paid ocean freight to foreign freight forwarder in usd currency. In this circumstance who is resposible for service tax on ocean freight. | " |
| Originally posted by :Guest | ||
| " | Originally posted by :Akshay Kumar Purohit " We are exported some goods through a logistics company of india. The said company made all arrangent for clearing of goods in USA( custom duty or other exp).we are reimburse all expenses for clearing of goods.we are also reimburse ocean freight to said company.The logistics company raised bills and also charge service tax on his service which not including of ocean freight. The said company raised separetaly invoice for ocean freight and same reimburse by us. The logistics company paid ocean freight to foreign freight forwarder in usd currency. In this circumstance who is resposible for service tax on ocean freight. " |
" |
In my view there is no service tax on ocean freight.
Ocena freight not required to be included in the taxable value and no Service Tax is required to be paid.
As Ocean Fright is not Taxable Component so no service Tax will be paid by ony one on Ocean Fright and no libility in respect of Service Tax arise toward any one.
The Internal Audit Patries + CAG officers are of the view that the ocean freight or air fioreght charged by the Clearing/ Forwqarding agents as reimbursements is liable in the hands of the company on reverse charge basis.
In the first instance the ocean freight is not a taxable service and therefore it should not form part of the levy at all. Example is if we take legal services there is no ST.
Secondly the service is utilised by teh CFA and not the ultimate cusotmer as there is normally no agent and princiapl relationship for the amountof the ocean frieght. The freight is negotiation with the CFA.
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