Transportation of material between Indian ports through foreign vessels – specific performance
a) We are considering transporting raw material from one Indian seaport to another Indian seaport, sometimes through a foreign vessel, chartered through the ministry of shipping, for a specific voyage.
b) The entire transaction is conducted through the brokers of the shipowner who also signs the fixture note, charter agreement on behalf of the shipowners.
c) An order u/s 163 of IT Act 1961 is issued recognizing a firm/person to be treated as agents to the master of ship and also non-resident shipping company for the specific voyage and a port clearance certificate is issued, after requisite income tax has been made and the agents are issued notice u/s 172 of IT act 1961 calling for various documents alongwith the return to be filed u/s 172(3).
d) The freight remittance is made to the shipowner who is an NRI.
Our question is whether service tax on the freight is to be borne by us or the invoice has to be raised by the broker/agent who has signed the fixture note etc.
whether sec 66A and sec 92) of Sec 68 applicable.
CAclubindia
