The decision to scrap 4.5% service tax on ocean freight for consignments transshipped from Visakhapatnam and Kolkata ports as the third country imports to Nepal will benefit the trading community of the Himalayan country.
Alternative Exim port
The service tax imposed in June last year was withdrawn vide the Ministry of Finance TRU Circular No.204/2/2017 dated February 16 with immediate effect on goods intended for transshipment to any country outside India.
Following problems faced for shipment of cargo from Kolkata Port, on a request by Nepal, the Ministry of Commerce declared Visakhapatnam Port as an alternative EXIM port last year following which the Visakhapatnam Port has been trying to create the required ecosystem to facilitate movement of cargo.
Visakhapatnam Port Deputy Chairman P.L. Haranadh told The Hindu that they were expecting trade to Nepal to pick up shortly with talks in progress to introduce a box train to Birgunj Inland Container Depot.
A proposal to open the Nepal’s Consulate General Office in Visakhapatnam is also under consideration
