Service Tax applicability on import & export of cargo, Service Tax

[Ravi Chopra]

(a)Is service tax chargable in case of charter of foreign airlines for import & export of cargo of Indian companies. (b)if foreign airlines is chartered for sending goods abroad for demonstration purposes and the goods are brought back in india on behalf of indian companies

Posts / Replies

[Madhukar N Hiregange]

The export cargo is exempted undr 29/2005 dt 15.7.2005. Import would be liable. The goods sent for exhibition not being in the nature of export would also be liable.

[Surender Gupta]

In addition to the reply of Mr. Madhukar N Hiregange, I would like to say that sending abroad for demonstration purposes and receiving back the goods in India are two independent activities for the purpose of Service Tax. You may get the benefit of Customs Duties but not of the service tax.