Freight forwarding is taxable as transportation service and not as intermediary service

Authority for Advance Rulings, New Delhi held as follows: In case of Freight Forwarding (Buying and Selling cargo space) on principal-to-principal basis, freight margin would not amount to 'intermediary services' and Place of Provision thereof would be determined as per rule 10 of Place of Provision of Services Rules, 2012 Place of Provision of freight margin on export shipment would be outside India and not taxable; however, in case of import shipment : (a) freight margin was in negative list upto 31-5-2016; (b) from 1-6-2016, freight margin on transport by aircraft will be exempt and freight margin on transport by vessel will be taxable.