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Service tax on air freight and ocean freight

Mayank Kapoor (.) (159 Points)

12 July 2012

I have few queries regarding the new service tax rules . i will be glad if anyone could help me.

1 service tax on air freight & Ocean freight applicable or not and what %

2 service tax on transportation goods by road .

3 how to charge service tax on invoice? ( 25 % on freight value or 100%)

Thanks in advance

Mayank Kapoor

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1 Replies

Ajit kumar Dubey (Taxation Manager) (637 Points)
Replied 12 July 2012

As per your first query, air freight or ocean freight paid for transportation of goods from outside India to any Customs port in India is not liable to service tax. For transportation of coastal goods service tax is to be paid on vessel freight on 50% of the bill value. As per your second query, there is no change in taxability of transportation goods by road except that for availing the abatement @ 25 %, GTA has to mention on the invoice that he has not availed any CENVAT Credit for provision of the said service.