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Service tax on ocean fright exempted

Sanjeev Kumar (MBA Finance (Manager Accounts)) (77 Points)

07 March 2011

We are agents of shipping Line we have agency agreement .we are also registed in the catagory of steamer agent services .During service tax audit auditors asked for notification/circular where it is mentioned that ocean freight is exepted from service tax. Unable to trace circular/notification . Request to pls provide circular/notification to satisfy auditors that ocean freight is exempted from service tax.

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 07 March 2011

SUBJECT:
Imposition of Service Tax on services rendered by Custom House Agents and Steamer Agents regarding.

            By the issue of Notification No. 17/96-Service Tax dt. 6.6.97, service tax has been imposed on Custom House Agents and Steamer Agents w.e.f. 15.6.97. The service Tax is imposed under the provisions of Chapter V of the Finance Act, 1994 (32 of 1994), as amended.

2. CUSTOM HOUSE AGENTS

        In the context of these two services, certain points have been raised for clarification which are discussed below:

2.1         The expression "Custom House Agent" has been defined to mean a person licensed, temporarily or otherwise, under the regulations made under sub-section (2) of Section 146 of the Custom Act, 1962. A person is permitted to operate as a Custom House Agent, temporarily under regulation 8(1) and permanently Regulations, 1984.

2.2         As per the Finance Act, 1997, the taxable service rendered by a Custom House Agent means any service provided to a client by a Custom House Agent in relation to the entry or departure of conveyances or the import or export of goods. The value of the taxable service in relation to the service provided by a Custom House Agent to a client has agent from the client for services rendered in any manner in relation to import or export of goods. The service tax is chargeable @ 5% on the value of the taxable service.

2.3         The services rendered by the Custom House Agent are not merely limited to the clearing of the import and export consignment. The CHA also renders the service of loading/ unloading of import or export goods from /at the premises of the exporter / importer, the packing, weighment, measurement of the export goods, the transportation of the export goods to the customs station or the import goods from the customs station to the importer’s premises, carrying out of various statutory and other formalities such as payment of expenses on account of octroi, destuffing/pelletisation, terminal handling, fumigation, drawback/ DEEC processing, survey / amendment fees, dock fees, repairing and examination charges, landing and container charges, statutory labour charges, testing fees, drug control formalities, sorting / marking / stamping / sealing on behalf of the exporter / importer. The Custom House Agent also incurs various other expenses such as crane / fork lift charges, taxi charges, photostat and fax charges, bank collection charges, courier service charges, and miscellaneous other expenses on account of the exporter / importer. For all the above charges, the CHA is ordinarily reimbursed by the importer / exporter for whom the above services are rendered. Apart from the above charges, the CHA also charges the client for his service under the head / nomenclature of ‘agency and attendance charges’ or similar kind of heads which is purported to be his service charge in respect of the services rendered in relation to the import / export goods.

2.4         It is clarified that in relation to Custom House Agent, the service tax is to be computed only on the gross service charges, by whatever head / nomenclature, billed by the Custom House Agent to the client. It is informed that the practice obtaining is to show the charges for services as " agency commission", "charges", "agency and attendance charges", "agency charges" and some similar descripttions. The service tax will be computed only with reference to such charges. In other words, payments made by CHA on behalf of the client, such as statutory levies (cess, Customs duties, port dues, etc.) and various other reimbursable expenses incurred are not to be included for computing the service tax.

2.5         In many cases, the Customs House Agent undertakes "turnkey" imports and exports where a lump sum amount is charged from the client for undertaking various services. In these cases, the lump sum amount covers not only the "agency commission" fee but also other expenses and no separate break-up is given in respect of these expenses. It has been decided that in such cases, the value of the taxable service shall be 15% of the lumpsum amount charged to the client. The Custom House Agents are required to show the service charges as 15% of such lumpsum amount of the bills and Service Tax of 5% will be chargeable on the above 15%.

2.6         Some times, CHAs sub-contract their work to CHAs located in other stations. In such cases, it is possible that the sub-contracting CHA raises the bill on the main CHA who in turn raises the bill to the client. It has been decided that in such cases, the sub-contracting CHA will not be required to pay service tax on the bills raised by him on the main CHA, The service tax will be payable by the CHA who provides the actual service to the client and raises the bill to the client.

2.7         A CHA may have various branch offices located at different stations but all these branch offices do not raise the bills and only the main or central office will be raising the bills. In such cases, only the central office should be registered with the Department.

2.8          Sometimes, the bills raised by the CHA are not entirely paid by the client and the CHA is forced to give discounts. In such cases where the final bill raised is lower than the initial bill, it may be mentioned that the law provides for claiming of refund of excess service tax paid within six months from the date of payment of tax. If the CHA can produce evidence of having charged less services fee, he may claim refund of excess service tax paid, if any, as per the provisions of law.

3. STEAMER AGENTS

3.1         The expression ‘Steamer Agents’ has been defined to mean any person who undertakes, either directly or indirectly.

to perform any service in connection with the ships’ husbandry or dispatch including the rendering of administrative work related thereto; or

to book, advertise or canvass for cargo for or on behalf of a shipping line; or

to provide container feeder services for or on behalf of a shipping line;

3.2         The taxable service provided by a steamer agent to a shipping line, is the service provided by a Steamer Agent in relation to a ships’ husbandry or dispatch or any administrative work related thereto as well as the booking, advertising or canvassing of cargo, including container feeder services. The value or the taxable service in relation to service provided by a steamer agent to a shipping line, shall be the gross amount charged by such agent from the shipping line for services in relation to a ship’s husbandry or dispatch or any administrative work related thereto or in relation to the booking, advertising or canvassing of cargo, container feeder services including the commission paid to such agent.

3.3         Steamer Agents incur various types of expenses on behalf of the shipping line such as pilottage and berth hire charges, Indian Coast light dues paid to the port authorities, cargo expenses paid to port authorities and transporters such as CONCOR / railways, private transporters, chartered accountants fee, income tax, brokerage paid on export cargo, ship handling expenses paid to stevedoring agents. For all the above charges the Steamer Agent is ordinarily reimbursed by the Shipping line. Further, the Steamer Agent bill the principals i.e. the shipping line, for two types of service charges. One is called the husbandry fee which they charge for a ships’ husbandry. The second is the agency commission which is paid by the shipping line on the import and export cargo. These commissions are usually paid as a percentage of the net ocean freight (basic freight) which is clearly indicated in the agreement entered into between the Steamer Agent and shipping line.

3.4         It is clarified that in relation to the Steamer Agent, the service charges will constitute the husbandry fee as well as the agency commission on import / export cargo. Other expenses incurred by the Steamer Agent on behalf of the shipping line shall not be taken into account.

3.5         It has been represented that the accounting for purposes of service tax should be on per voyage, per vessel basis and further that the registration for service tax purposes should be done only of their seaport offices. It has been decided that only such sea port offices of the Steamer Agent should be registered for service tax purpose which are raising the bill to the shipping lines. The branch offices in ICDs which are just sales offices and do not raise any bills to the shipping line, need not be registered. This is for the reasons that billing is done by the sea port offices and not the branch offices.

4. MISCELLANEOUS

4.1         It may be mentioned that the provisions of Section 68 and 76 of the Finance Act, 1994, as amended by the Finance Act, 1997 will also come into force from 15^th June 1997. Section 67(2) of the Finance Act, 1994 provides that the service tax collected during a month shall be deposited to the Government account by the 15^th of the succeeding month. Section 68(3) of the Finance Act, 1994 as amended, provides that a person responsible for collecting the service tax who fails to collect such tax shall be liable to pay service tax to the Government within 75 days from the close of the month in which the service was rendered. Section 76 further provides that in case of failure to pay the tax within the period of 75 days, the person responsible for collecting the service tax shall in addition to the tax and interest payable thereon be liable to pay a penalty.

4.2         As per section 69 of the Finance Act, 1994, read with rule 3 and 4 of the Service Tax Rules, 1994, every person responsible for collecting the service tax is required to be registered with the concerned Central Excise Officer appointed under rule 3. Notification No. 18/97 – Service Tax, dated 6.6.97 amends rule 2 of the said rules so as to prescribe that the person responsible for collecting the service tax in relation to the services provided by a CHA or a Steamer Agent shall be the CHA or the Steamer Agent, as the case may be, who raises the bill for services rendered and shall include each of the offices of such agents which raise the bill for services rendered to their client or their principal, as the case may be.

4.3        Rules relating to levy of service tax on other services are already in existence. The procedure to be followed for the registration, maintenance of documents, filing of returns and manner in which the service tax is to be paid, is given below:

         Every person in the jurisdiction of Mumbai-I Central Excise commissionerate who is responsible for collecting the Service Tax shall make an application to the Assistant Commissioner, Service Tax Cell, New Central Excise Building, 115, M.K. Road, Mumbai-400 020 in Form ST-I for registration. When an assessee provides taxable services from more than one premises or office, he shall make separate application for registration in respect of each such premise or office.

        When a registered assessee transfers his business to another person, the transferee shall obtain a fresh certificate of registration.

        When a registered assessee ceases to carry on the activity for which he is registered, he shall surrender his registration certificate immediately to the Central Excise authorities.

         The Service Tax collected during any calendar month shall be paid to the credit of the Central Government by 15^th of the following month in form TR-6 challan (yellow colour) e.g., for the month of June 1997, it should be credited latest by 15^th of July, 1997. The head of account for the above 2 services will be intimated shortly.

        Any person, responsible for collecting the service tax who fails to collect the tax shall, notwithstanding such failure, be liable to pay such tax to the credit of the Central Govt. within 75 days from the end of the month in which the service was rendered.

         If any assessee fails to pay or credit the Service Tax or any part thereof in time, he shall pay simple interest @ 1.5% for every month or part of a month by which such payment / crediting of the tax or any part thereof is delayed.

         A Quarterly Return in Form ST-3 (in triplicate) should be filed within 15 days of the end of the preceding quarter, i.e. latest by 15^th July, 15^th October, 15^th January and 15^th April for the quarters ending June, September, December and March respectively.

Registration

Payment of Service Tax

Interest on Delayed Payment of Service Tax

Filling of Quarterly Returns

Penalty for failure to collect or pay Service Tax

If any person responsible for collecting Service Tax fails to collect such tax, he shall be penalised a sum equal to the amount of Service Tax which he failed to collect, besides paying the actual amount of tax and the interest thereon.

If any person, fails to pay the Service Tax to the credit of the Central Govt. in time after having collected the service tax, he shall pay a penalty of Rs. 100/- which may extend to Rs. 200/- per day during which such failure continues, besides paying the actual service tax and the interest thereon. However, the penalty in this case shall not exceed the amount of Service Tax that he failed to pay.

Note: The amount of Service Tax collected should be separately shown on the invoice for the service provided.

If a person fails to furnish the Quarterly Return (including "Nil" return) in form ST-3 in time, i.e.. by 15^th July, 15^th October, 15^th January and 15^th April for the quarters ending June, September, December and March respectively, he shall be penalised with a sum of Rs. 100/- extendable to Rs. 200/- for every day during which the failure continues.

If any person is found concealing or supperssing the value of taxable service or has furnished inaccurate value, etc., such person shall be penalised a sum upto twice the amount of service tax sought to be evaded by reasons of suppression, concealment, etc. besides paying the actual service tax and interest, if any.

Apart from the above penalties, persons committing offences under Chapter V of the finance Act, 1994 would also be liable to prosecution in certain cases.

Every assessee shall furnish to the Central Excise Officer at the time of filing his quarterly return for the first time a list of all accounts maintained by the assessee in relation to service tax including memoranda received from his branch offices.

Penalty for failure to furnish the Quarterly Return:

Penalty for suppressing value of taxable service

Records

5.         The following Annexures are enclosed for the information of the tax-payers.

Annexure No.

Particulars

I

From ST-1

II

From TR-6

III

From ST-3

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 07 March 2011

(107) TRANSPORT OF COASTAL GOODS AND TRANSPORT OF GOODS

THROUGH NATIONAL WATER WAY/INLAND WATER SERVICE

(A) Date of Introduction: 01.09.2009 vide Section 26/2009 ST., dated. 19.08.2009

(B) Definition and scope of service:

“Taxable Service” means any service provided or to be provided to any person, by

any other person in relation to transport of –

(i) coastal goods;

(ii) goods through national waterway; or

(iii) goods through inland water.

Explanation.- for the purpose of this sub clause ,-

(a) “coastal goods” has the meaning assigned to it in clause (7) of section 2

of the Customs Act, 1962 (52 of 1962);

(b) “national waterway” has the meaning assigned to it in clause (h) of

section2 of the Inland Waterways Authority of India Act, 1985 (82 of

1985);

the Inland Vessels Act, 1917 (1 of 1917);

(Section 65 (105) (zzzzl) of Finance Act, 1994 as amended)

Definitions as per Allied Acts:

“Coastal goods” means goods, other than imported goods, transported in a

vessel from one port in India to another.

(Section 2 (7) of Customs Act, 1962)

“National waterway” means the inland waterway declared by section 2 of

the National Waterway (Allahabad-Haldia Stretch of the Ganga-Bhagirathi-Hooghly

River) Act, 1982 (49 of 1982), to be a national waterway.

Explanation.- If Parliament delclares by law any other waterway to be a

national waterway, then from the date on which such declaration takes effect, such

other waterway-

(i) shall be deemed also to be a national waterway within the meaning of

this clause; and

(ii) the provisions of this Act shall, with necessary modifications (including

modification for construing any reference to the commencement of this

Act as a reference to the date aforesaid), apply to such national

waterway.

(Section 2(h) of Inland Waterways Authority of India Act, 1985)

“Inland water” means any canal, river, lake or other navigable water.

(Section 2(b) of Inland Vessels Act, 1917)

Rate of Tax Accounting Code

Service Tax 10% of the value of

services

00440470

Education Cess 2% of the service tax

payable

00440298

Secondary and

Higher Education

cess

1% of the service tax

payable.

00440426

Other –

Penalty/interest

As levied or applicable 00440473

( Rate of tax is effective from 24.02.2009.)

( D ) Classification of Taxable Services:

(1) The classification of taxable services shall be determined according to the terms of

the sub-clauses (105) of section 65;

(2) When for any reason , a taxable service is prima facie, classifiable under two or

more sub-clauses of clause (105) of section 65, classification shall be effected as follows :-

(a) the sub-clause which provides the most specific descripttion shall be preferred to

sub-clauses providing a more general descripttion;

(b) composite services consisting of a combination of different services which cannot

be classified in the manner specified in clause (a), shall be classified as if they

consisted of a service which gives them their essential character, in so far as this

criterion is applicable;

(b), it shall be classified under the sub-clause which occurs first among the subclauses

which equally merits consideration.

( Sec.65A of Finance Act,1994)

(E) Valuation of taxable services for charging Service tax

(1) Service tax chargeable on any taxable service with reference to its value shall,—

(i) in a case where the provision of service is for a consideration in money, be the gross

amount charged by the service provider for such service provided or to be provided by

him;

(ii) in a case where the provision of service is for a consideration not wholly or partly

consisting of money, be such amount in money, with the addition of service tax charged,

is equivalent to the consideration;

(iii) in a case where the provision of service is for a consideration which is not

ascertainable, be the amount as may be determined in the prescribed manner.

(2) Where the gross amount charged by a service provider, for the service provided or to be

provided is inclusive of service tax payable, the value of such taxable service shall be

such amount as, with the addition of tax payable, is equal to the gross amount charged.

(3) The gross amount charged for the taxable service shall include any amount received

towards the taxable service before, during or after provision of such service.

(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined

in such manner as may be prescribed.

Explanation.—For the purposes of this section,—

(a) “consideration” includes any amount that is payable for the taxable services

provided or to be provided;

(b) “money” includes any currency, cheque, promissory note, letter of credit, draft, pay

order, travellers cheque, money order, postal remittance and other similar instruments

but does not include currency that is held for its numismatic value;

account and any form of payment by issue of credit notes or debit notes and ‘book

adjustment, and any amount credited or debited, as the case may be, to any account,

whether called “Suspense account” or by any other name, in the books of account of a

person liable to pay service tax, where the transaction of taxable service is with any

associated enterprise.

( Sec.67 of Finance Act,1994)

Inclusion in or Exclusion from value of certain expenditure or cost:

(1) Where any expenditure or costs are incurred by the service provider in the course

of providing taxable service, all such expenditure or costs shall be treated as consideration

for the taxable service provided or to be provided and shall be included in the value for the

purpose of charging service tax on the said service.

[Rule 5(1) of Service Tax (Determination of Value) Rules,2006)]

(2) The expenditure or costs incurred by the service provider as a pure agent of the

recipient of service, shall be excluded from the value of the taxable service if all the

following conditions are satisfied, namely:-

(i) the service provider acts as a pure agent of the recipient of service when he

makes payment to third party for the goods or services procured;

(ii) the recipient of service receives and uses the goods or services so procured

by the service provider in his capacity as pure agent of the recipient of

service;

(iii) the recipient of service is liable to make payment to the third party;

(iv) the recipient of service authorizes the service provider to make payment on

his behalf;

(v) the recipient of service knows that the goods and services for which payment

has been made by the service provider shall be provided by the third party;

(vi) the payment made by the service provider on behalf of the recipient of

service has been separately indicated in the invoice issued by the service

provider to the recipient of service;

(vii) the service provider recovers from the recipient of service only such amount

as has been paid by him to the third party; and

(viii) the goods or services procured by the service provider from the third party as

a pure agent of the recipient of service are in addition to the services he

provides on his own account.

[Rule 5(2) of Service Tax (Determination of Value) Rules,2006)]

(F) Clarifications issued by the Board/Ministry:

Transport of Coastal Goods; and Goods transported through Inland water: Coastal

goods (as defined under the Customs Act) and transport of goods through National

Waterways, and inland waters are proposed to be brought under tax net. Suitable

abatement and exemption to specified goods would be provided through issuance of

notification at the appropriate time.

Vide M.F. (D.R.) letter D.O.F. 334/13/2009- TRU dated 06.07.2009.

(G) Exemption & Exclusion:

1. Exemption to Small Scale Service Providers:

In exercise of the powers conferred by sub-section (1) of section 93 of the

Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance Act), the Central

Government, on being satisfied that it is necessary in the public interest so to do, hereby

exempts taxable services of aggregate value not exceeding Ten lakh* rupees in any

financial year from the whole of the service tax leviable thereon under section 66 of the said

Finance Act:

Provided that nothing contained in this notification shall apply to,-

(i) taxable services provided by a person under a brand name or trade name,

whether registered or not, of another person; or

(ii) such value of taxable services in respect of which service tax shall be paid by such

person and in such manner as specified under sub-section (2) of section 68 of the

said Finance Act read with Service Tax Rules,1994.

2. The exemption contained in this notification shall apply subject to the following

conditions, namely:-

(i) the provider of taxable service has the option not to avail the exemption contained in

this notification and pay service tax on the taxable services provided by him and such

option, once exercised in a financial year, shall not be withdrawn during the remaining part

of such financial year;

(ii) the provider of taxable service shall not avail the CENVAT credit of service tax paid on

any input services, under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 (herein after

referred to as the said rules), used for providing the said taxable service, for which

exemption from payment of service tax under this notification is availed of;

(iii) the provider of taxable service shall not avail the CENVAT credit under rule 3 of the

said rules, on capital goods received in the premises of provider of such taxable service

during the period in which the service provider avails exemption from payment of service

tax under this notification;

(iv) the provider of taxable service shall avail the CENVAT credit only on such inputs or

input services received, on or after the date on which the service provider starts paying

service tax, and used for the provision of taxable services for which service tax is payable;

(v) the provider of taxable service who starts availing exemption under this notification

shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in

respect of such inputs lying in stock or in process on the date on which the provider of

taxable service starts availing exemption under this notification;

(vi) the balance of CENVAT credit lying unutilised in the account of the taxable service

provider after deducting the amount referred to in sub-paragraph (v), if any, shall not be

utilised in terms of provision under sub-rule (4) of rule 3 of the said rules and shall lapse on

the day such service provider starts availing the exemption under this notification;

(vii) where a taxable service provider provides one or more taxable services from one or

more premises, the exemption under this notification shall apply to the aggregate value of

all such taxable services and from all such premises and not separately for each

premises or each services; and

(viii) the aggregate value of taxable services rendered by a provider of taxable service

from one or more premises, does not exceed rupees *ten lakhs in the preceding financial

year.

3. For the purposes of determining aggregate value not exceeding ten*lakh rupees, to avail

exemption under this notification, in relation to taxable service provided by a goods

transport agency, the payment received towards the gross amount charged by such goods

transport agency under section 67 for which the person liable for paying service tax is as

specified under subsection (2) of section 68 of the said Finance Act read with Service Tax

Rules, 1994, shall not be taken into account.

Explanation.- For the purposes of this notification,-

(A) “brand name” or “trade name” means a brand name or a trade name, whether

registered or not, that is to say, a name or a mark, such as symbol, monogram, logo,

label, signature, or invented word or writing which is used in relation to such specified

services for the purpose of indicating, or so as to indicate a connection in the course of

trade between such specified services and some person using such name or mark with

or without any indication of the identity of that person;

(B) “aggregate value not exceeding *ten lakh rupees means the sum total of first

consecutive payments received during a financial year towards the gross amount, as

prescribed under section 67 of the said Finance Act, charged by the service provider

towards taxable services till the aggregate amount of such payments is equal to ten

lakh rupees but does not include payments received towards such gross amount which

are exempt from whole of service tax leviable thereon under section 66 of the said

Finance Act under any other notification.

4. This notification shall come into force on the 1st day of April, 2005.

[Notification No. 6/2005-ST, dated 1-3-2005. *Amended by Notfn.No. 8/2008-ST

dated 01.03.2008]

2. Services to UN Agencies

Services provided to United Nations or an International Organizations are exempt.

[Notification No. 16/2002-ST, dated 2-8-2002]

3. Export of service: Any service which is taxable under clause 105 of Section 65 may be

exported without payment of service tax.

( Rule 4 of Export of Services Rules,2005)

4. Exemption to services provided to a developer of SEZ or a unit of SEZ:

Exempts the taxable services specified in clause (105) of section 65 of the said Finance Act,

which are provided in relation to the authorized operations in a Special Economic Zone, and

received by a developer or units of a Special Economic Zone, whether or not the said

taxable services are provided inside the Special Economic Zone, from the whole of the

service tax leviable thereon under section 66 of the said Finance Act subject to certain

conditions. ( Refer notification for details)

{ Notification No. 09/2009ST dated 03.03.2009 (Prior to 03.03.2009 Notfn.No4/2004-ST

dated 31.03.2004)}

5. Exemption to value of goods & material sold by service provider: In exercise of

the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central

Government, being satisfied that it is necessary in the public interest so to do, hereby

exempts so much of the value of all the taxable services, as is equal to the value of goods

and materials sold by the service provider to the recipient of service, from the service tax

leviable thereon under section (66) of the said Act, subject to condition that there is

documentary proof specifically indicating the value of the said goods and materials.

(Notification No. 12/2003-ST dated 20.06.2003 effective from 01.07.2003)

6. Exemption to taxable services provided by TBI and STEP: All taxable services,

provided by a Technology Business Incubator (TBI) or a Science and Technology

Entrepreneurship Park (STEP) recognized by the National Science and technology

Entrepreneurship Development Board (NSTEDB) of the Department of Science and

Technology, Govt. of India from the whole of the service tax leviable thereon subject tio

certain conditions and procedures. ( Refer notification for details)

(Notification No.09/2007 ST dated 01.03.2007)

7. Exemption to taxable services provided by entrepreneurs located within the

premises of TBI or STEP: All taxable services, provided by an entrepreneur located

within the premises of a Technology Business Incubator (TBI) or a Science and Technology

Entrepreneurship Park (STEP) recognized by the National Science and technology

Entrepreneurship Development Board (NSTEDB) of the Department of Science and

Technology, Govt. of India from the whole of the service tax leviable thereon subject to

certain conditions and procedures. ( Refer notification for details)

(Notification No.10/2007 ST dated 01.03.2007)

8. Exemption to services provided to Foreign Diplomatic Missions or Consular Post

in India: All services provided by any person, for the official use of a Foreign Diplomatic

Mission or Consular Post in India are exempted from service tax subject to certain

conditions and procedures. (Refer notification for details)

(Notification No. 33/2007-ST dated 23.05.2007)

9. Exemption to services provided for personal use of a family member of

Diplomatic Agent or Career Consular Officers posted in Foreign Diplomatic

Mission/Consular Post in India: All services provided by any person, for personal use of

family member of Diplomatic Agents or Career Consular officers posted in a Foreign

Diplomatic Mission or Consular Post in India are exempted from service tax subject to

certain conditions and procedures. (Refer notification for details)

(Notification No. 34/2007-ST dated 23.05.2007)

*******************

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 07 March 2011

except 107 there is no such provision to charge service tax by water transport for goods,

ask the servicetax officials to show the effective date of imposition of service tax on ocean freight. there is no such service profile, except 107 in relation to movement of goods by water transport.

Sanjeev Kumar (MBA Finance (Manager Accounts)) (77 Points)
Replied 07 March 2011

Dear Sir

Thanks

I have provided same circular but he was not satisfied after that i again asked him to show me circular in which it is mentioned that it is taxable .

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 07 March 2011

Originally posted by : Sanjeev Kumar
	Dear Sir Thanks I have provided same circular but he was not satisfied after that i again asked him to show me circular in which it is mentioned that it is taxable .

logistic companies are in big time net of Incometax for TDS, now the servicetax department is getting data from there, and they dreams to take service tax from all TDS applicable expenses, i belive that more than 70% officers dont remember even the full taxable services chart, so how they can remember the abatement and exemptions therein.

be sure that logistic services apart from above 117 is not in servicetax net even

the reason .................

service tax is limited in boundaries of india geographically, except jammu and kashmir. sea route is not in indian geographical territory,