Dear Valued Customer,
Government of
India Ministry of Finance (Department of Revenue) has issued Notification
No.3/2017 –
Service tax on 12th January 2017.
The New ST
notification imply that prepaid Ocean Freight(OFR) including surcharges as
applicable at origin on Imports into India by way of Vessel is subject
to service tax with effect from 22nd January 2017.
Reason for the
levy of service tax on ocean freight is “Prepaid OFR including surcharges
considered to be a transaction between Non Resident shipper and non-resident
shipping Line”. For administrative convenience of Government, the master of the
vessel/shipping agent has been made responsible to pay tax to the Indian
Government.
As such in
order to comply with the said notification issued by Government of India, we
will presently collect the service tax component from customer in India.
Thank you for your
continued support. Should you have any questions or concerns regarding this
change, please contact our local YANG MING office.
Yours
Faithfully,
Yang Ming Line