Suresh Kumar Goyal (CA Practice ) (54 Points)
25 September 2014Dear Sir,
Please clear whether a) service tax is leviable on Shipment from Indian Border to other country and vice-versa b) service tax is leviable on Travelling/booking of goods by Aircraft from Indian Border to other country and vice-versa c) Carrying of goods by sea within India d) Carrying of passengers within India by sea or any other mode in water.
S. K. Goyal
9312289953
Kashish Gupta
(B.com (H) , ACA)
(368 Points)
Replied 25 September 2014
Dear,
Please refer to Place of provision of service Rules.
Rule 10 - carrying Goods - Place of provision of service is the place of destination of goods.
a/ b) When shipment/aircraft is booked from India - Place of destination is foreign country - hence POPS not in Taxable territory i.e. ST NOT LEVIABLE.
When shipment/aircraft is done from outdide india into India - Place of provision is in India - ST applicable. But covered under Negative List (section 66D(q)) - ST NOT LEVIABLE.
c) Place of provision of service is in India - even if goods are transported across coastal line of India (refer definition of India - it extends upto Exclusive Economic Zone) - ST Leviable
d) Inland waterways - Negative list service (section 66D(q)) - ST not leviable
CAclubindia
