In its notification 01/2017-Service Tax, issued on January 12, 2017, the Government of India has announced the withdrawal of the exemption of prepaid import ocean freight from Service Tax with effect from January 22, 2017.
To comply with this notification, Hamburg Süd has to invoice the Service Tax of 4,5% on all prepaid import Ocean Freight and ancillary Ocean Charges.
Service Tax will be payable by the same party paying the Ocean Freight. However, in view of the very short notice and/or existing commercial agreements it may not be possible to always collect Service Tax at the place of payment of Ocean Freight.
In such cases, Service Tax will be collected from consignees in India prior to release of cargo.
Further information can be obtained from your local Hamburg Süd offices.
Contact details can be found: