The International Federation of Freight Forwarders Associations (FIATA) have asked for clarification on how the service tax would apply to transactions between two foreign entities that are outside of the local tax regime.
Taxable persons who are a part of the Indian tax regime could qualify for a tax credit and recover the tax paid, but that is not possible for a person outside of the tax regime.
Although the service tax rule says the provider of the service is responsible for paying the tax, it also allows for the recipient of the service – the consignee – to pay.
Seabridge export specialists employ their wealth of knowledge and experience navigate international freight forwarding to safeguard compliance and provide the most accurate advice. To speak with an export specialist about these recent tax changes or other concerns call Seabridge today on 1800 727 195.