Business Auxiliary Services - Ship broking covered thereunder

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....freight payment till the cargo reaches its destination. Hence, the activities undertaken by ship brokers are nothing but provision of services on behalf of client for a consideration akin to that of a commission agent. As per Section 65(19)(vii)(a) of the Finance Act, 1994, "Commission agent" means :- 'any person who acts on behalf of another person and causes sale or purchase of goods, or prov....

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....e fact that it monitors the cargo movement till it reaches the destination. Ship broker also ensures that freight is paid after cargo reaches the destination. Hence the activities undertaken by ship broker are of commission agent and leviable to Service tax under Business Auxiliary Service (BAS) of Section 65(105)(zzb) of Finance Act, 1994. 3. In view of the above, it is clarified that the serv....