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Service tax on export ocean freight

Rajkumar Gutti (Audit Manager) (314 Points)

09 June 2016

can service tax is applicable on ocean freight in case of export, please guide us

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3 Replies

Vikas (CA) (1135 Points)
Replied 09 June 2016

No, place of provision would be outside India.

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Chirag Parmar (Service) (65 Points)
Replied 09 June 2016

In the case of transportation of goods, place of provision would be destination of goods except by mail or courier or by GTA under rule 10 of Place of Provision of Services Rules, 2012.

So, in the case of export, place of provision would be destination of goods i.e. outside the taxable territory. So, service tax would not be leviable under section 66B.

It may be noted that for the person who is providing such transportation services may avail credit of input services as the transportation of goods from custom port station to outside India by Vessel has been excluded from the defination of Exempt Services under Rule 2 of CCR, 2004 vide budget 2016.