Clearing and Forwarding agent status determined by commission relationship; commission from principal triggers service tax liability. Whether food grain commission agents are C&F Agents depends on the principal-agent relationship and who pays the commission. Agents who buy grain outright are not agents of the farmer and are not C&F Agents. Agents who sell on farmer-dictated terms but receive commission only from buyers are not C&F Agents; unlawful deductions do not create agency. Agents who lawfully receive commission from farmers and meet Board conditions are C&F Agents and liable to service tax on their commission.
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.
Clearing and Forwarding agent status determined by commission relationship; commission from principal triggers service tax liability.
Whether food grain commission agents are C&F Agents depends on the principal-agent relationship and who pays the commission. Agents who buy grain outright are not agents of the farmer and are not C&F Agents. Agents who sell on farmer-dictated terms but receive commission only from buyers are not C&F Agents; unlawful deductions do not create agency. Agents who lawfully receive commission from farmers and meet Board conditions are C&F Agents and liable to service tax on their commission.
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