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Service tax — Coal merchants liable to tax as clearing and forwarding (C & F) agents - Service Tax - F. No. 159/1/2003-CX 4Extract Service tax Coal merchants liable to tax as clearing and forwarding (C F) agents Letter F. No. 159/1/2003-CX. 4 Dated 10-12-2003 Your kind attention is invited towards your representation received by the Board on above cited subject, inquiring as to whether the services of Coal Merchants would be covered under the category of Clearing and Forwarding Agents for applicability of Service Tax. Also it has been informed vide above representation that the Coal Merchants primarily act as buyer's agents and carry out such jobs/assignments as asked for by the respective consumers/buyers. The issue has been examined by the Board and in this regard I am directed to say that on the basis of mode of functioning of Coal Merchants, it has been observed that in terms of definition of Clearing and Forwarding Agents under the Section 65(25) of Finance Act, 1994 (as amended), functions of Coal Merchants are fully covered and accordingly their services are liable to Service Tax under the category of Clearing and Forwarding Agents. Also in this case it is immaterial as to whether they are working as agents of buyers or sellers, in terms of definition of Clearing and Forwarding Agents as referred.
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