The India Service Tax is applicable for sea freight and related freight charges for import shipments destined to India, even if the freight is on prepaid terms outside of India. The service tax applicable for freight prepaid shipments should be payable along with the sea freight outside of India.

In view of the tax regulations, the ocean sea freight and freight related charges are subject to the service tax rate of 4.5%.

To ensure you are informed of the changes and to comply with regulatory filing requirements, Hapag-Lloyd will impose the service tax of 4.5% on applicable sea freight and freight related charges on the invoices for import shipments to India with effect from the following dates:

TradeEffective from
All import trades to India except USAFebruary 1, 2017
All import(s) from USAFebruary 26, 2017

Please note that all other service taxes applicable for shipments to and/or from India that are payable in India as per current practice remains unchanged.

Source: Hapag Lloyd
2017-01-27

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