Service tax liability shift for clearing and forwarding agents requires agents to pay tax instead of the engaging principal. The Service Tax regime was amended to transfer payment responsibility for taxable services provided by clearing and forwarding agents from the principal or client to the agents themselves, effective 1 September 1999. Such agents are liable under Section 68(1) and must follow existing registration, return filing, assessment and recordkeeping requirements; taxable value remains the gross remuneration or commission paid to the agent.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Service tax liability shift for clearing and forwarding agents requires agents to pay tax instead of the engaging principal.
The Service Tax regime was amended to transfer payment responsibility for taxable services provided by clearing and forwarding agents from the principal or client to the agents themselves, effective 1 September 1999. Such agents are liable under Section 68(1) and must follow existing registration, return filing, assessment and recordkeeping requirements; taxable value remains the gross remuneration or commission paid to the agent.
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