Office of the Commissioner of Customs, Central Excise and Service Tax,
ICE House, EDC Complex, Patto Plaza, Panaji, Goa.
TRADE NOTICE NO. 5/2007-08 – SERVICE TAX
Date: 26/2/2008
Sub: Clarification of Service Tax on freight charges – reg.
The attention of all service providers is invited to the subject mentioned above.
Doubts have been raised regarding the Service Tax on freight charges in certain cases. Postal Department has engaged Shipping Companies for conveyance of outward surface Indian Postal Mails to various Ports of foreign countries and handling of export cargo, passenger baggage, etc. It is clarified that such a service provided by Shipping Company would be in the nature of ‘distribution, management and logistics’ service and delivery order charges and inland haulage charges collected by Shipping Companies would be considered as being for such distribution, management and logistics service. Such a service is specifically covered under category ‘business support services’ and is liable to Service Tax.
sd/-
C. Mathur
Commissioner