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of <h1>Service Tax Now Applies to Clearing & Forwarding Agents, Rent-a-Cab Operators as per Finance Act 1997, Effective July 16.</h1> The circular informs that services provided by clearing and forwarding agents and rent-a-cab scheme operators are now subject to service tax as per the Finance Act, 1997, effective from July 16, 1997. Clearing and forwarding agents are defined as those engaged in services related to clearing and forwarding operations, with the principal responsible for service tax collection. Rent-a-cab operators must maintain specific operational standards and are taxed at 5% on gross charges for services. Registration and compliance guidelines are outlined, with the State Bank of India authorized to collect service tax in the specified Commissionerate.
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