Dear Valued Customer,
Please be advised that the Indian government has issued a new notice dated April 13th amending regulations concerning the application and collection of service tax (FTC) on ocean freight and other freight-related charges. Below are the changes which will take place as of B/L date April 23rd, 2017.
For shipments where the ocean freight is prepaid in Canada, or paid on an elsewhere basis, no service tax will be manifested or applied. Please note that the tax has not been withdrawn; however, the responsibility will now be on the importer to pay the service tax on freight charges directly to the government.
For shipments where the ocean freight is being collected in India, the service tax will not be manifested, and will be collected by MSC from the consignee at destination.
Please note that the current service tax levels of 15% (IHC) are still applicable on DTHC, and other destination charges.
Should you have any questions about the service tax, please contact your local MSC Canada office.
MSC appreciates your continued support.
MSC (Canada) Inc.