Sal (Self employed) (91 Points)
03 October 2012Hello,
One of our Client is registered under the category of Cargo Handling Services ( Packing & Moving of Household goods Domestic & International) under earlier Rules. Now with the Negative list coming into effect, what is the impact on their Chargeability, since there is an exemption to Goods Transport Agency in the Negative List.
Kindly advise.
vaibhav
(student)
(253 Points)
Replied 18 October 2012
Cargo handling service does not include mere transporation of goods. Mere transportaion of goods is covered under GTA service, where service receiver has to pay service tax @ 12.36% on 25% of taxable service. Cargo handling service include packing, unpacking, stuffing, destuffing and transporation.
Section 65(23) which defines cargo handling service includes services of packing together with transportation of cargo or goods, with or without one or more other services like loading, unloading, unpacking, under cargo handling service. With this amendment, packing with transportation will be classifiable under cargo handling service only and Service Tax will be levied.
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