Service Tax — Food Grain Commission Agents — Leviability of Service Tax as C&F Agents

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....ave been raised as to whether food grain Commission Agents would be liable to pay Service tax or not under the category of Clearing and Forwarding Agents (C&F Agents). In some States such agents are also referred to as Adhat Vyaparies or as Adhatiyas. 2. In some cases it has been reported that a food grain agent purchase the grains outright from farmers in auctions. After purchasing the food gra....

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....erms and conditions dictated by the farmer. The agent collects a Commission (presently 2%) from the buyer of the food grain and not from the farmer. As per section 75 of the Rajasthan Agricultural Marketing Products Act, 1954 the agents or adhatiyas are barred from charging any commission from the farmers. 5. Since in such cases no commission is payable by the farmer to the adhatiyas it cannot be....