Happy New Year and of course, Happy Chinese New Year 2019! The Chinese New Year 2019 is fast approaching. The public holiday in China for Chinese New Year (CNY) is from 4 February to 10 February 2019 (week 6).
Last Friday 27 January 2017, APSA received notification of an indian service tax on pre-paid imports into India.
It appears that a significant service tax (4.5%) is to be levied by the Indian Ministry of Finance for all cargoes landed in India on or after 22 January 2017. The tax is to be collected by the foreign-owned shipping lines, who have already attempted to start collecting the tax from Australian exporters. Up until recently an exemption was given on pre-paid ocean freight.
APSA (Australian Peak Shippers Association) has not yet received any advice from the Australian Government and it is unclear whether or not the tax should be collected from the Australian shippers or from the local consignees. If is to be collected from Australian shippers then we do expect an outcry from the export community.
We are awaiting clarification from the Department of Foreign Affairs and Trade (DFAT), but in the meantime please do not hesitate to get in touch with me directly or your Magellan Customer Service team member for further information on 1300 651 888.
Please refer to the official notices from the Indian Ministry of Finance below:
Service Tax Amendment Jan 2017.pdf
Notification No 1-2017-ST.pdf
Notification No 2-2017-ST.pdf
Notification No 3-2017-ST.pdf
Freight & Trade Alliance