Import of goods on FOB basis vs CIF basis: Service tax on ocean freight

According to me in CIF cases also cenvat credit of service tax can be taken based on the duty paid challan provided separate challans are raised for an importer/a consignment.

Without freight element bill can be raised by the shipping lines on importer for service tax alone by forwarding duty paid challan

Prior to the issuance of referred notifications in respect of CIF imports foreign exporter when they enter into a contract with foreign freight forwarder there was no service tax. But the same contract entered with Indian freight forwarder service tax is applicable. Now level playing field is provided by making foreign freight forwarder also liable to pay service tax. Person in charge of vessel and who files IGM i.e. shipping lines has been made liable to pay service tax.

Ideally nobody will entertain to include service tax cost in the price

govindan_mani govindan_mani 28/02/2017