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Important changes regarding application of Indian service tax on prepaid freight charges for shipments destined to India where invoice is not paid in India
Dear Valued Customer,
At Maersk Line we are continually working to ensure all of our activities respect local government regulations to provide our customers with a responsible, trouble free customer experience.
As such we would like to inform customers shipping to India and who are located outside of India of a newly introduced service tax on freight related charges which are paid outside of India. The application of this India Service Tax will result in an increase of approximately 4.5% on freight related charges tabulated hereunder on shipments destined to India.*
Though this Government notification has been introduced on a very short notice and comes into effect immediately from 22nd January 2017, considering the need for reasonable timeframe for our customers to adapt, Maersk Line will start implementing this new tax on the invoices issued effective 1st February 2017 for Non FMC and 22nd February 2017 for FMC regulated trades for all the prepaid ocean freight shipments. Which means that all Maersk Line invoices issued for ocean freight on shipments destined to India on prepaid basis on and after 1st February 2017 for Non FMC and 22nd February 2017 for FMC regulated trades will reflect this service tax.
Should you have further queries, please contact MAERSK LINE customer services
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