Service Tax on Clearing & Forwarding Agents – Clarification reg.

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..... oard, that certain doubts 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 .....

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..... and also indicating the 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/e .....

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