Service Tax on Clearing & Forwarding Agents – Clarification reg.

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....bts have emerged, whether, Service Tax is leviable on ICDs/CFS dealing with import/export cargo as "C&F agents". In this regard, the matter is clarified as under. 2. As defined under Section 65 (16) of the Finance Act, 1994 "C&F agent" means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing & forwarding operations in any manner to any o....

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....commission or remuneration to which the C&F agent is entitled. Therefore, ICDs/CFS can not be considered as C&F agents on the following grounds: (i) There is no agreement or contract between service Provider (ICD/CFS) and Service receiver (importer/exporter); (ii) ICDs/CFS are functioning under authority of Govt. of India and not for any principal or owner (importer/exporter). 5. It is also cla....