Friday, 21 April 2017
Update of India Service Tax on Import Shipments – Effective April 23, 2017
Dear MOL Customer:
Please be advised that the Government of India issued a new notification on April 13, 2017, which amended the collection rules of Service Tax on import prepaid shipments with effect from April 23, 2017. We have summarized the implications below:
For Import Prepaid Freight:
BL’s issued on or before April 22, 2017
MOL Liner will invoice Service Tax at 4.50% on Ocean Freight plus related surcharges as per existing procedure either to shipper or consignee.
BL’s issued on or after April 23, 2017
MOL Liner will not invoice any Service Tax either to shipper or consignee. The Applicable Service Tax must be paid by consignee directly to the Government of India in accordance with guidelines given in newly issued notifications.
For Import Collect Freight:
MOL Liner will continue to invoice the tax to the consignee as per the current procedure. The law on Collect Freight remains unchanged.
If you have any questions, please contact your MOL sales or customer service representative. As always, we appreciate your business.
MOL Liner Ltd.