Service tax on Ocean Freight

As we discussed TDS liability on Ocean Freight in previous article, it is obvious question of service tax liability on Ocean Freight.

However, there are no much dispute on applicability of Service tax on Ocean Freight.

Service by way of transportation of goods by an air craft or vessel from a place outside India upto the customs station of clearance in India is included under Section 66D (p) (ii) of Finance Act, 1994, that is negative list. therefore the said service is not liable to service tax.