TaxTMI 
TaxTMI 
TaxTMI 
Service Tax — Storage facility service for storage of liquid cargo in tanks — Not liable to tax as C & F agents
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....ed under Section 37B of the Central Excise Act, 1994 (as made applicable to Service Tax by Section 83 of the Finance Act, 1994), the Central Board of Excise & Customs considers it necessary, for the purposes of uniformity in connection with classification of services, to issue the following instructions. 2. Doubts have been raised as to whether service of storage facility and charging rent for s....
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.... been imported or is intended for export. They charge rent for storage of liquid cargo deposited with them. 7. It is observed that, as per Section 65 of Finance Act, 1994, 'Clearing & Forwarding Agent' means "any person who is engaged in providing any service, either directly or indirectly connected with the clearing and forwarding operations in any manner to any other persons and includes a cons....
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....ned. Normally, a C & F agent receives goods from the factories or premises of the Principal or his agents, stores these goods, despatches these goods as per orders received from the Principal or owner, arranges transport, etc. for the purpose and prepares invoices on behalf of the Principal. For this service, the C & F agents receives commissions on the basis of agreed terms. Therefore, an essenti....
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....hese agencies are not receiving any commission from the principal but only rental for storage facility, whereas a C & F agent's remunerations is in the form of commission. The transactions between the parties are not transactions between principal and an agent but between principal and principal. These agencies are neither receiving any despatch orders from the owners of the goods, nor are they ar....