29 September 2007
Dear Sir, My company has asked DHL express to courier certain packet from singapore to hongkong .the bill is raised in india but service tax is nor charged on the outside india courier service charges .The service tax has been charged only on services from india. Pls clear whether DHL is right. regards, ajay jogai
Date of Introduction: 01.1.1996 vide Notification No.6/96-ST dt. 31.10.96. Definition:
Courier Agency means a commercial concern engaged in the door to door tr ansportations 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. (Section 65(20) of Finance Act, 1994 as amended)
Taxable events & scope of services: Taxable service means any service provided to a customer, by a Courier Agency to their client in respect of door-to-door transportation of time sensitive documents, goods or articles. (Section 65(72)(f) of Finance Act, 1994 as amended)
The nature of service provided by these Express Cargo Transporter is the same as the service provided by the conventional courier agencies. Therefore, these Express Cargo Services are also liable to pay Service Tax. (Ministry’s F.No.341/43/96-TRU dt.31.10.1996)
Angadia engaged in commercial activities such as undertaking of delivery of the documents, goods, or articles received from the customer to other end, are clearly covered by the definition of “Courier Agency” and are liable to pay the Service Tax on the services provided by them.
Value of Taxable service: Value of the taxable service in relation to Courier Service shall be the gross amount charged by such agency from the customer for services in relation to door-to-door transportation of time sensitive documents, goods and articles. (Section 67 of Finance Act, 1994 as amended)
Wherever the Courier Agencies provide service in relation to warehousing, packing, inventory management relatable to door to door transportation of documents, goods and articles, the amount charged for such facilities are includible in the gross amount for the purpose of levy of Service Tax. (Ministry’s F.No.341/43/96TRU dt.31.10.1996)
Exemption and Exclusion:
i. The services provided by the Courier Agencies to United Nations, an International Organization and certain specified Diplomatic Missions are exempted from payment of Service Tax. (Authority: Notification no. 48/98 dated 24/04/98, 44/98 dated 22/1/98, 47/98 ST dated 24/4/98)
ii. ‘Co-loader’ is a company whose services are engaged by a Courier Agency for handling part of the job for delivery of articles, goods, documents, etc. they are not providing any direct service to the customer. The client is concerned only with the Courier Agency, for the services and the co-loader is only a subcontractor. Therefore the service provided by the “co-loader” is not leviable to Service Tax.
iii. Department of Post is not a commercial concern. The Speed Post services provided by it do not attract Service Tax. (Ministry’s F.No.341/43/96-TRU dt.31.10.1996)
29 September 2007
Services rendered in India are exligible to Service Tax. Though the bill is raised in India, service has been rendered outside India(document from Singapore to Hongkong). I feel DHL is right.
CAclubindia
