Service tax applicability to clearing and forwarding agents clarified; ICDs/CFS not treated as C&F agents absent contract and principal relationship.
Clarifies that service tax applies to services of a C&F agent where there is a contract and a principal agent relationship; ICDs/CFSs, lacking agreements with importers/exporters and operating under government authority rather than as authorised representatives of a named principal, are ordinarily not C&F agents. Domestic container depots should be examined separately against the Board's contractual parameters and treated accordingly.

Service Tax Audit expanded to selected metropolitan assessees with mandatory proforma, reconciliations and risk analysis.
The Board extends selective Service Tax Audit coverage to named metropolitan assessees listed in Annexure I, preserving prior norms for stock broking, telephones and non life insurance. Audits are limited to accounts from 1999-2000 (or from July 2001 for newly taxed services), to be completed within ten working days using the Annexure II proforma. Audit teams should follow EA 2000 methods, perform preliminary reviews, document systems and tax accounting, evaluate internal controls, conduct reconciliations and a sample Risk Loss Analysis, verify registration, returns, payments and exemptions, and submit structured reports with findings, assessee responses and follow up actions.

Filing by registered post allowed for ST 3 returns, with departmental acknowledgement and continued due date compliance.
Permits Service Tax assessees to submit ST 3 returns to the concerned Divisional Office by registered post when in person filing is difficult; the Department will acknowledge receipt of such mailed returns, but assessees must ensure the returns reach the Divisional Office on or before the due date and comply with statutory filing deadlines.