co loaders

[KISHOR DATTANI]

One of my client X provides COURIER AGENCY service. They take the services of IATA approved agent Y for air cargo booking just as facilitator to arrange booking in airlines. however, airway bill contains the name of my client X only. My query is whether services of IATA agent would be treated as co-loaders or y's services would be treated as input service ? Plz clarify this with appropriate case laws , if any.

AI Summary

Courier Agency's Air Cargo Agent Services: Co-loader or Input Services? Clarification on Service Tax Implications Under IATA Rules A client, operating as a courier agency, uses an IATA-approved agent for air cargo bookings. The client's name appears on the airway bill, raising a query about whether the agent's services should be classified as co-loader services or input services for tax purposes. The response clarifies that the agent's services would be considered input services only if the client pays service tax on the full value at the full rate. If the client pays service tax solely on their portion of income, the agent's services would not qualify as input services.