Transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India. - Service Tax Practice Manual / Ready Reckoner - Service Tax

Chapter 53 Transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India. (W.e.f - 1 st June 2016) Scope of Exempt Service - Notification no. 25/2012 dated 20.06.2012 From 1.6.2016 Notification no. 07/2016 - Dated 18-2-2016 53. Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India. Amending notes w.e.f. 1.6.2016 : The entry in the Negative List that covers services by way of transportation of goods by an aircraft or a vessel from a place outside India up to the customs station of clearance [ section 66D (p)(ii) ] is proposed to be omitted with effect from 1.06.2016. Clause 146 of Finance Bill 2016 may please be seen in this regard. However such services by an aircraft will continue to be exempted by way of exemption notification [ Not. No. 25/2012-ST , as amended by notification No. 09/2016-ST dated 1st March, 2016 refers]. The domestic shipping lines registered in India will pay service tax under forward charge while the services availed from foreign shipping line by a business entity located in India will get taxed under reverse charge at the hands of the business entity. The service tax so paid will be available as credit with the Indian manufacturer or service provider availing such services (subject to fulfillment of the other existing conditions). It is clarified that service tax levied on such services shall not be part of value for custom duty purposes. In addition, Cenvat credit of eligible inputs, capital goods and input services is being allowed for providing the service by way of transportation of goods by a vessel from the customs station of clearance in India to a place outside India . Consequential amendments are being made in Cenvat Credit Rules, 2004 [ Not. No. 23/2004-CE (N.T.), as amended by Sl. Nos. 2(b) and 5(h) of notification No. 13/2016-C.E. (N.T.) dated refers.