Whole of service tax exempt on transportation of goods by a vessel from outside India upto a custom station where the invoice for the same has issued on or before 31st May,2016.

Central government has exempt whole of service tax on service of transportation of goods by a vessel from outside India upto a custom in India where invoice for the same has been issued on or before the 31at May 2016, subject to the following conditions.

     

       1.   The import manifest or import report required to be delivered (Section 30 of the custom Act, 1962 (52 of 1962)) has been delivered on or before the 31 May 2016 and

       2.  The certified copy of such import manifest or import report has been produced to custom be service provider or service recipient.

(Notification No.36/2016, Dated 23^rd June 2016).

Budget 2016 imposed service tax on transportation of goods by a vessel from outside India up to a custom station in India with effect from 1^st June 2016 in order to complete the credit chain and enable Indian shipping lines to avail and utilize input tax credits.