India: Changes in Service Tax

Dear Customer,

Following the announcement in the Union Budget on 29th Feb 2016, wherein the new Krishi Kalyan Cess (’KKC’) and the service tax levy on import freight has been introduced, Hamburg Sud will be obliged to charge service tax as follows with effect from 01.06.2016.

Particulars New tax Rate w.e.f. 01.06.2016
All taxable services Service Tax = 14.00%
Swachh Bharat Cess = 0.50%
Krishi Kalyan Cess = 0.50%
Total Tax = 15.00%

Import freight and freight related charges
invoiced in India
(applicable on 30% of taxable services)
Service Tax = 4.20%
Swachh Bharat Cess = 0.15%
Krishi Kalyan Cess = 0.15%
Total Tax = 4.50%

In the notification no. 10 / 2016 the Central Board of Excise and Customs (CBEC) has ruled that above taxes are also applicable on any outstanding balance as on 01.06.2016.

Further information can be obtained from local Hamburg Süd Offices.

Contact details can be found: