Terminal Handling Charges - Reimbursement of charges service tax liability

[Asked by Guest]

Dear Sir 1. Whether Terminal Handling Charges (THC) done by Shipping agents comes under “Business Support Services”? 2. If X limited paying THC to Shipping agents & reimburses same amount it from his customer, Y, whether Service tax liability arises for X limited? 3. Whether any liability if reimburses with profit from his customer, Y? 4. If assessee applies for new registration, after 7 days, if no response from department. There will be a deemed registration. Suppose if the assessee has not received any registration certificate, what should be done? How to mention registration certificate number in half- yearly returns?

AI Summary

Reimbursement as pure agent exempt from service tax only if eight conditions met; added margin makes intermediary service taxable.
Terminal handling by shipping agents falls under Business Support Services; reimbursements are non-taxable only when treated as a pure agent under the Determination of Value rules and all conditions are met. Any markup or add-on renders the intermediary's reimbursement taxable as a service. Pending registration, send a recorded reminder, use the PAN+ST-001 registration format on invoices, and file returns with a cover letter noting the awaited certificate.