Request your guidance in relation to my below query.
Quey : We are providing global logistics services to our customers. In case of exports, goods are picked from shipper factory in India and transported to somewhere overseas.This include three legs of services viz Origin services (performed here in India) , Air/Ocean transport (main freight charges ) & destination charges (performed in overseas like clearance, transportation to consignee's place, loading & unloading , etc ). The total invoice is raised here in India on the Shipper.
My query is regarding under new Service tax provisions post Negative lists of services and Place of provision of Supply of services, whether destination charges in case of export is liable to service tax or is it exempt from service tax ?
23 August 2012
Service provided to an exporter in relation to transport of the said goods by goods transport agency in a goods carriage directly from their place of removal, to an inland container depot, a container freight station, a port or airport, as the case may be, from where the goods are exported.-- see notification 31/2012
As per place of provision of service Rules, 2012 10. Place of provision of goods transportation services.- The place of provision of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of the goods: and therefore freight is not taxable
But my query remain unresolved. My question is regarding destination services performed outside India . What we provide is multi modal transport services not simply transport of goods in a goods carriage.
My understanding of the Act says Rule 10 of PoP Rules may get attracted and as such service tax must be exempt.
CAclubindia
