service tax on various jobs, Service Tax

[dhanalakshmi r]

We are an International Freight Forwarders Registered in Chennai

Kindly advise the following :-

Whether service tax is applicable on ex-works charges - import from non-taxable territory to India or RCM is applicable , we are doing above job on behalf of our clients (importer in India)

Whether service tax is applicable on ex-works charges -Export from India to non-taxable territory or RCM is applicable , we are doing above job on behalf of our clients (Exporter in India)

Handling charges - import incentive - whether service tax is applicable or RCM applicable

Handling charges - Export incentive - whether service tax is applicable or RCM applicable

Overseas remittance - whether service tax is applicable or RCM applicable

Indirect expenses (admin ) related service tax whether we can taken input.

Overseas detention / Demurrage charges/ repair charges collected from importer located in India,, whether service tax is applicable or RCM applicable

Overseas detention / demurage charges/ repair charges collected from exporter located in India , whether service tax is applicable or RCM applicable.

Whether service tax is applicable on transport charges . service rendered in India (customer factory to port ) - transport charges charged to customer (exporter or importer

Whether service tax is applicable on transport charges . service rendered in India (customer factory to port ) - transport charges charged to overseas counterpart

Posts / Replies

[KASTURI SETHI]

SH.DHANLAKSHMI R.Ji,

Your firm's activity is covered under Rule 9 (C) of Place of Provision Services Rules,2012 under the category of Specified Services- (C) Intermediary Services. Intermediaries Services include the following

services w.e.f. 1.10.2014:-

1. Freight Forwarder acting as an intermediary (There are four other services also)

Definition of 'Intermediary' as per Rule 2 (f) of POPS Rules, 2012 w.e.f. 1.10.2014 “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the ‘main’ service) or a supply of goods, between two or more persons, but does not include a person who provides the main service or supplies the goods on his account.

You are doing various jobs on behalf of your clients.Hence Service Tax is applicable on ex-works charges under the category of BAS under erstwhile Section 65 (105) (zzb) (vi) (Now 'Other than Negative List')

As per Rule 9 of POPS RULES, 2012, Place of provision is location of Service Provider. There are ten questions/points asked by your firm which are discussed as under:-

For points 1 to 8, location of service provider is in India and your firm is the service provider in India (Taxable Territory). You are liable to pay Service Tax on Ex- works charges mentioned in point No.1 to 8 above. RCM not applicable.

Regarding Point No.9 & 10, Rule 10 of POPS Rules, 2012 is applicable. Who pays the freight will pay Service Tax on the amount of freight after abatement of 70% from the gross amount of freight. Reverse charge mechanism is applicable to GTA service under Notification No.30/12-ST dated 20.6.12 as amended.

These are my views and interpretation. You may ask further question, if any doubt. I also solicit views from other experts on this issue.

[KASTURI SETHI]

Sh. Dhanalakshmi R,

Pl.also peruse Sh.Sanjay Malhotra CS's reply dated 18.5.2015 on this very issue which is in harmony with my reply. Query ID No.108619 dated 18.5.15 refers in this forum.