TO the relief for foreign shipping companies operating in India, the Directorate General of Goods and Services Tax Intelligence (DGGI) has withdrawn a tax demand of US$357,742 against 18 foreign firms for the financial year 2017-18, reports Odisha's Pragativadi daily.
The tax demand was rescinded after the shipping companies collectively assured authorities that no services had been imported during 2017-18, the report said.
This decision by the dggi relieves foreign shipping lines such as Maersk, Orient Overseas Container Line Ltd, and Hapag-Lloyd Mediterranean Shipping, which were issued notices for non-payment of Goods and Services Tax (GST) on imported services from July 2017.
However, the tax demand for subsequent years remains in effect.
The DGGI initiated an investigation in October 2023, examining claims that the Indian branches of foreign shipping companies and airlines had not paid GST under the reverse charge mechanism for services such as aircraft rental, maintenance, and crew salaries paid abroad.
The agency also requested detailed explanations from these companies while raising tax demands from July 1, 2017 to March 2024.
In February of this year, the DGGI issued summonses to all foreign shipping lines operating in the country.
SeaNews Turkey
The tax demand was rescinded after the shipping companies collectively assured authorities that no services had been imported during 2017-18, the report said.
This decision by the dggi relieves foreign shipping lines such as Maersk, Orient Overseas Container Line Ltd, and Hapag-Lloyd Mediterranean Shipping, which were issued notices for non-payment of Goods and Services Tax (GST) on imported services from July 2017.
However, the tax demand for subsequent years remains in effect.
The DGGI initiated an investigation in October 2023, examining claims that the Indian branches of foreign shipping companies and airlines had not paid GST under the reverse charge mechanism for services such as aircraft rental, maintenance, and crew salaries paid abroad.
The agency also requested detailed explanations from these companies while raising tax demands from July 1, 2017 to March 2024.
In February of this year, the DGGI issued summonses to all foreign shipping lines operating in the country.
SeaNews Turkey
