Service tax applicability

[Sarwan Agarwal]

Dear Sir, Thank you for reply of my qurrey no. 586. The person is engaged in transportation of goods in small packets (not in containers) by railway. They pick up the load from customer and deliver at the delivery address. Hope now i am clear on the issue. Kindly advice whether Service tax is applicable and if at waht rate. Regds

[sudhir V S]

Dear Mr. Agarwal If it is a time sensitive goods, it may be covered under Courier Agency Service else there is also a remote posibilities under cargo handling if mere transportation it may not be cargo handling.

AI Summary

Courier Agency Service applies to time-sensitive parcel rail pickup-and-delivery; otherwise cargo handling is unlikely for tax purposes.
The activity is pickup-and-delivery of small packets by rail. It may qualify as Courier Agency Service if the goods are time-sensitive and individual packet pickup/delivery is provided; alternatively there is a remote possibility of classification as Cargo Handling, but mere transportation without ancillary handling is unlikely to be treated as cargo handling.