FEB-2017 / FPS Export Customer Advisory – Service Tax on ocean freight in India.
Dear valued customer,
On the 12th of January, 2017, The Government of India distributed a notification in which they announce to withdraw the exemption of service tax for 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 any origin outside of India up to any given customs station of clearance in India.
Effective February 1st 2017, representative agent of FPS in India will calculate an additional service tax of 4,5% on all ocean freight amounts, in order to cover the implemented service tax imposed by The Government of India.
Should you have any questions, please get in touch with us and we will assist you wherever possible.
Trusting to have herewith informed you sufficiently.
With best regards,
FPS Famous Pacific Shipping B.V.