07 February 2011
hello experts, If a person is a clearing and forwarding agent and if he owns a building the rental service provided to the consignor will be a taxable service?????????
if yes,the c&f agent can pay the tax to the government only if the consignor pays him?
08 February 2011
Hi Poornima, As per SecSection 65(72) (j) of Finance Act, 1994 as amended, Taxable service (in relation to a C & F agent)means any service provided to a client, by a Clearing & Forwarding Agent in relation to clearing & forwarding operations, in any manner.
A clearing and forwarding agent normally undertakes the following activities:
(a) receiving the goods from the factories or premises of the principal or his agents;
(b) warehousing these goods;
(c) receiving dispatch orders from the principal;
(d) arranging dispatch of goods as per the directions of the principal by engaging transport on his own or through the authorized transporters of the principal;
(e) maintaining records of the receipt and dispatch of goods and the stock available at the warehouse; Service Tax is payable on above services. (Ministry’s F.No.B43/7/97-TRU dt.11.07.1997)
Now,poornima i think the rental service amounts to ware housing.Therefore the remuneration charged by such C& F agent will also include such ware housing charges.Iam not sure,plz confirm with other experts.
08 February 2011
You have admitted to be providing two different services viz.,clearing and forwarding and renting. Here, to decide the taxability, to whom the services are rendered does not matter except in few cases. As per the information provided, it appears, both the services are taxable. With regard to the second part, it does not matter whether the recipient pays the ST or not to the service provider in any category of service. If not paid, the ST is payable on cum-tax basis. So keep going.
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