Service Tax on Air Freight Charges, Service Tax

[RAJENDRA KHOMNE]

Dear Sir, Good Morning,

We have purchase imported material from dealer and he charged Air Freight charges in bill. Our query is, Is Service Tax Reverse Charges Mechanism applicable for Air Freight Charges? Pl guide.

Thanks,

Khomne R. M.

YESHSHREE PRESS COMPS PVT. LTD.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Reverse charge mechanism applies only to Goods Transport Agency Service. It is not applicable to Air Freight Charges.

[Ganeshan Kalyani]

I agree with the views of Sri Rajagopalan Sir. Air freight service is not enumberated in the reverse charge notification no. 30/2012-ST and hence not liable to pay service tax under reverse charge basis.Thanks.

[KASTURI SETHI]

Sh.Rajendra Khomne Ji,

Agreed with both experts but I would like to add as under :-

You are not direct in picture. Had the importer paid ST he would have charged in the bill and you would have forwarded the same to your buyer.

Serial No.10 of Notification No.30/12-ST dated 20.6.12 (as amended) cannot be brushed aside. Since you are experienced and knowledgeable person, no need to explain implication/intricacies of this serial no.