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of <h1>Air Cargo Agents Must Pay Service Tax for 'Business Auxiliary Services' Under Finance Act, 1994 Since July 1, 2003.</h1> The circular addresses the applicability of service tax on Air Cargo Agents under 'Business Auxiliary Services' as per the Finance Act, 1994. The Air Cargo Agents Association of India questioned whether their services, such as billing, collection, and logistics, fall under this category. After hearings and submissions, it was determined that these services do qualify as 'Business Auxiliary Services.' Consequently, Air Cargo Agents must pay service tax on remuneration received since July 1, 2003. The decision emphasizes that there exists a service provider-client relationship between the agents and airlines, requiring the agents to comply with tax obligations.
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