From 1.6.2016

Service of Goods Transportation

by Vessel

vessel from a place outside India up to the customs station of clearance is now Taxable

(However If similar service is by aircraft,it is exempt under Mega Exemption Notification)

Who pay Service Tax in this case?

In case of Domestic Shipping Line,

Normal Charge is applicable and it pays Service tax

In case of Foreign Shipping Line,

Reverse Charge is applicable as it is a case of import of Service and the Business entity receiving this service will pay Service Tax

  1. Indirect Tax
  2. Amendments Indirect Tax for May 2017 Exams

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.