The Government has withdrawn the Service Tax exemption provided to transportation of goods by vessel from outside India with effect from 23rd April 2017.
A new Notification to this effect has been issued by the Central Board of Excise and Customs (CBEC) in its Official website.
The Notification seeks to amend notification No. 30/2012-ST dated 20.06.2012 so as to specify the importer as defined under clause (26) of section 2 of the Customs Act, 1962 (52 of 1962) of goods as the person liable for paying service tax in case of services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of such goods by a vessel from a place outside India up to the customs station of clearance in India.
It is stated that “For the purposes of this notification, in respect of services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India, person liable for paying service tax other than the service provider shall be the importer as defined under clause (26) of section 2 of the Customs Act, 1962 (52 of 1962) of such goods.”
Through the notification, the Government has withdrawn service tax exemption to such services in last July. Through the Notification dated 23.06.2016, the said services were exempted from service tax net in public interest subject to a condition that condition that the import manifest or import report required to be delivered under section 30 of the Customs Act, 1962 (52 of 1962) has been delivered on or before the 31st May, 2016.
In last February, the Board, through a circular, had also clarified that services by way of transportation of goods by a vessel from a place outside India to the customs station in India would not amount to taxable services.
Read the full text of the Notification below.
