Category of Service for 'Courier & Cargo'.

This query is : Resolved

Guest

Guest (Querist)

11 August 2010 Dear Friends / Experts,

(In my PREVIOUS queries on the above subject, I believe that I have missed the relevant facts. Hence, this posting again now).

Please go through and give me more clarity in the following :

Mr. Karthik is an individual wants to become an 'AUTHORISED BUSINESS ASSOCIATE' for FIRST FLIGHT COURIERS and proposing to do the activity 'Courier & Cargo' for FIRST FLIGHT COURIERS.

Q1. Now, please clarify, under what category of service, the above activity shall be covered.

Ans : ...............

Q2. Why the above activity shall not be covered under ‘Business Support Service’ or ‘Franchise Service’ or ‘Commission Service’ category? Please clarify me, as I am completely confused.

Ans : ...............

I am sure, the experience always speaks on such situations.

Q3. While filling Form ST-1, should the applicant choose the Category of Registrant as :

i. Service Provider only or both i & ii
ii. Service Recipient.

Ans : ...............

Q4. Is there any separate Category of Service to be added for the activity as mentioned above for 'Cargo’ too ?

Ans : ...............

Friends / Experts, please do the needful.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 August 2010 Dear Friend, yester day I was given this definition for your query

Courier Agency means a commercial concern engaged in the door to door transportations of time sensitive documents, goods or articles, utilising the services of a person either directly or indirectly to carry or accompany such documents, goods or articles. Services provided by a Courier Agency to their client in respect of door to door transportation of time sensitive documents, goods or articles constitute taxable service for the purpose of the levy of service tax.

Above said definition, the word Directly or Indirectly is spefically includes the following person

Agency/Business associate/ Franchiese of courier agency

But in your case the agreement need to check better you refer 2 cases below

1.Speed & Safe courier service vs CCE (2008)13 STT 257 (Bangalore, CESTAT)

2.French Express Network p ltd vs CST (2008)16 STT 10 (Chennai CESTAT)

I hope this will clear your doubt

Guest

Guest (Querist)

14 August 2010 Dear Friend,

I am so grateful for your best efforts to give me clarification.

Friend, may I request you to provide me the above case details so that I shall go through the same.

I am unable to trace out the above two cases.

Friend, very very sorry for causing you inconveniences.

As I am interested to learn some new topics or works, I am requesting you to do the needful, if possible.

Friendly your,
D.KARTHIKEYAN.

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Guest

Guest (Querist)

VINOD ARORA

VINOD ARORA (Expert)
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15 August 2010 when there are separate categories of taxable services like "courier agency" and "cargo handling agency" service, there is no need to look here and there... simply go by the applicable taxable service heads matching the services being provided. As regards agency or frenchisee, there are different parameters for different situations which are not even remotely matching with courier/cargo servies.

Q1. its clear as above, under what categories of services, the above activities shall be covered.

Q2. the above activity shall be covered only under courier and cargo services. no need to confuse.

Q3. While filling Form ST-1, the applicant should choose the Category of Registrant as "Service Provider only"

Q4. There is separate Category of Service to be added for the activity of cargo, i.e. cargo handling servies.