SERVICE TAX ON PREPAID IHC CHARGES

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  1. WE IMPORTED A CONSIGNMENT ON CIF NEW DELHI BASIS WHEREIN THE PRICE INCLUDED THE INLAND HAULAGE CHARGES FROM DISCHARGE SEA PORT TO THE DESTINATION DRY PORT.

    THE SHIPPING LINE HAS BILLED US THE SERVICE TAX ON THE IHC CHARGES WHICH WE OBJECT TO PAY AS WE ARE NOT A PARTY TO THE TRANSPORTATION CONTRACT BETWEEN THE SHIPPER AND THE SHIPPING LINE.

    THUS PLEASE ADVISE IF WE ARE LIABLE TO PAY THE SERVICE TAX OR NOT AND QUOTE THE RELEVANT NOTIFICATION THANKS
     
  2. sowjanyagaddi

    sowjanyagaddi New Member

    The IHC is basically a term "Inland Haulage Charges" it can be a by way of tranportation of cargo from the dry port to port through Railway or can be a by way of road. Since the role of shipping line here is to manage the cargo, it is being a logistic support service which is being taxable under the head of Business Support Services. The matter was already been settled by the Honable TRU member of the service tax MR. Gautam Bhatacharya. So the charges charged by the CHA or forwarders is absoultely right in manner with the svc tx rate @ 10 or 12 + cess
     
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