9911796707
TMI BlogImposition of Service Tax on services rendered by Custom House Agents and Steamer Agents regarding.X X X X Extracts X X X X X X X X Extracts X X X X ..... raised for clarification which are discussed below: 2.1 The expression "Custom House Agent" has been defined to mean a person licensed, temporarily or otherwise, under the regulations made under sub-section (2) of Section 146 of the Custom Act, 1962. A person is permitted to operate as a Custom House Agent, temporarily under regulation 8(1) and permanently Regulations, 1984. 2.2 As per the Finance Act, 1997, the taxable service rendered by a Custom House Agent means any service provided to a client by a Custom House Agent in relation to the entry or departure of conveyances or the import or export of goods. The value of the taxable service in relation to the service provided by a Custom House Agent to a client has agent from the client f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under the head / nomenclature of 'agency and attendance charges' or similar kind of heads which is purported to be his service charge in respect of the services rendered in relation to the import / export goods. 2.4 It is clarified that in relation to Custom House Agent, the service tax is to be computed only on the gross service charges, by whatever head / nomenclature, billed by the Custom House Agent to the client. It is informed that the practice obtaining is to show the charges for services as " agency commission", "charges", "agency and attendance charges", "agency charges" and some similar descriptions. The service tax will be computed only with reference to such charges. In other words, payments made by CHA on behalf of the clien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the central office should be registered with the Department. 2.8 Sometimes, the bills raised by the CHA are not entirely paid by the client and the CHA is forced to give discounts. In such cases where the final bill raised is lower than the initial bill, it may be mentioned that the law provides for claiming of refund of excess service tax paid within six months from the date of payment of tax. If the CHA can produce evidence of having charged less services fee, he may claim refund of excess service tax paid, if any, as per the provisions of law. 3. STEAMER AGENTS 3.1 The expression 'Steamer Agents' has been defined to mean any person who undertakes, either directly or indirectly. a. to perform any service in connection with the shi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the principals i.e. the shipping line, for two types of service charges. One is called the husbandry fee which they charge for a ships' husbandry. The second is the agency commission which is paid by the shipping line on the import and export cargo. These commissions are usually paid as a percentage of the net ocean freight (basic freight) which is clearly indicated in the agreement entered into between the Steamer Agent and shipping line. 3.4 It is clarified that in relation to the Steamer Agent, the service charges will constitute the husbandry fee as well as the agency commission on import / export cargo. Other expenses incurred by the Steamer Agent on behalf of the shipping line shall not be taken into account. 3.5 It has been repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 69 of the Finance Act, 1994, read with rule 3 and 4 of the Service Tax Rules, 1994, every person responsible for collecting the service tax is required to be registered with the concerned Central Excise Officer appointed under rule 3. Notification No. 18/97 - Service Tax, dated 6.6.97 amends rule 2 of the said rules so as to prescribe that the person responsible for collecting the service tax in relation to the services provided by a CHA or a Steamer Agent shall be the CHA or the Steamer Agent, as the case may be, who raises the bill for services rendered and shall include each of the offices of such agents which raise the bill for services rendered to their client or their principal, as the case may be. 4.3 Rules relating to levy of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failure, be liable to pay such tax to the credit of the Central Govt. within 75 days from the end of the month in which the service was rendered. c. Interest on Delayed Payment of Service Tax If any assessee fails to pay or credit the Service Tax or any part thereof in time, he shall pay simple interest @1.5% for every month or part of a month by which such payment / crediting of the tax or any part thereof is delayed. d. Filling of Quarterly Returns A Quarterly Return in Form ST-3 (in triplicate) should be filed within 15 days of the end of the preceding quarter, i.e. latest by 15th July, 15th October, 15th January and 15th April for the quarters ending June, September, December and March respectively. e. Penalty for failure to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
