Port Services - As amended by the Finance Act ,2010

[CASeetharaman KC]

The recent amendment in the scope of 'Port Services' virtually means that any service rendered inside the port premises would be chargeable under 'Port Services'. Would this mean that a Clearing and Forwarding Agent operating inside the port would have to pay service tax under ' Port services' ?

AI Summary

Finance Act 2010 Amendment May Tax Port Services; Clearing & Forwarding Agents' Classification in Question, Excludes Section 65A. A discussion on the implications of the Finance Act 2010 amendment on 'Port Services' suggests that any service within port premises may now be taxable under this category. A query was raised about whether Clearing and Forwarding Agents operating in ports would be subject to this tax. One participant argued that if a service falls under a newly defined category, it was not previously taxable under existing ones, implying that Clearing and Forwarding activities should not be reclassified under 'Port Services.' However, another participant noted that the Finance Act 2010 excludes Section 65A, complicating the classification. The discussion references a CBEC clarification on service classification.