EXPORT HANDLING, Service Tax

[JAYA SHIPPING SERVICE]

Dear Sir,

    we are Handling of Rough Granite Blocks for Exports, From chennai port to other country,

  we like  know one clarifigation for Export hanling charges is service tax if applicable?.

 Granite blocks Handling  through Customs Notified Area CFS ( Container Fright Station). They have collecting Service Tax for Export Cargo. Please Advice Service TAX if payable?

Posts / Replies

[CA Rachit Agarwal]

Service Tax is applicable for the goods handling upto the port including handling services chargeable under the category "Port Services".

Service Tax will not be levied for material handling from port upto country of export i.e. service performed outside India as per Export Service Rules, 2005.

Service Tax receiver would be eligble for the refund of service tax for the export of goods provided that the realization proceeds in foreign currency and sales was in the course of export of goods and further subject to the notifications and services allowed for refund purpose.