|
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
Circular No.204/2/2017-Service Tax
Dated- 16th February, 2017
To,
Principal Chief Commissioners of Customs and Central Excise(All)
Principal Chief Commissioners of Central Excise & Service Tax (All)
Principal Director Generals of Goods and Service Tax/System/CEI
Director General of Audit/Tax Payer Services,
Principal Commissioners/ Commissioners of Customs and Central Excise (All)
Principal Commissioners/Commissioners of Central Excise and Service Tax (All)
Principal Commissioners/Commissioners of Service Tax (All)
Principal Commissioners/Commissioners LTU/Central excise/Service Tax (Audit)
Sub:- Applicability of service tax on the services by way of transportation
of goods by a vessel from a place outside India to the customs station in India
w.r.t. goods intended for transhipment to any country outside India - reg.
Madam/Sir,
Representations seeking clarification on levy of service tax on the services
by way of transportation of goods by a vessel from a place outside India to the
customs station in India with respect to goods intended for trans shipment to any
country outside India.
2. In this regard, it is mentioned that the goods landing at Indian ports
which are destined for any other country are allowed to be transshipped through
Indian territory without payment of Customs duty in India. This is subject to
the condition that such goods imported into a customs station are mentioned in
the import manifest or the import report, as the case may be, as for
transhipment to any place outside India. [Section 54(2) of the Customs Act,
1962]. Further, Goods Imported (Conditions of Transhipment) Regulations, 1995
have been prescribed for the procedure to be followed for transhipment of such
goods.
3. It is pertinent to mention that as per the charging Section 66B of the
Finance Act, 1994, service tax is leviable on services provided or agreed to be
provided in the taxable territory. Whether a service is provided or agreed to be
provided in the taxable territory or not, is determined as per Section 66C of
the Finance Act, 1994 and the Place of Provision of Services Rules, 2012 made
thereunder. In terms of the applicable rule 10 of the Place of Provision of
Services Rules, 2012, the place of provision of services of transportation of
goods by air/sea, other than by mail or courier, is the destination of the
goods.
4. Thus, with respect to goods imported into a customs station in India
intended for transhipment to any country outside India, the destination of goods
is not a place in taxable territory in India but a country other than India if
the same is mentioned in the import manifest or the import report as the case
may be and the goods are transhipped in accordance with the provisions of the
Customs Act, 1962 and rules made there under. Hence, with respect to such goods,
services by way of transportation of goods by a vessel from a place outside
India to the customs station in India are not taxable in India as the
destination of such goods is a country other than India.
5. All concerned are requested to acknowledge the receipt of this circular.
7. Trade Notice/Public Notice to be issued. Difficulty if any, in the
implementation of the circular should be brought to the notice of the Board.
Hindi version would follow
Yours faithfully,
(Dr. Abhishek Chandra Gupta)
Technical Officer (TRU)
[F.No.354/42/2016-TRU]
|