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TMI BlogService Tax on Clearing & Forwarding Agents and rent-a-cab scheme operators.X X X X Extracts X X X X X X X X Extracts X X X X ..... losed). 2. CLEARING AND FORWARDING AGENTS 2.1 "Clearing and forwarding agent" has been defined as "any person who is engaged in providing any service, either directly or indirectly, connected with clearing and forwarding operations in any manner to any other person and includes a consigning agent." The taxable service has been defined as "any service provided to a client, by C F agent in relation to clearing and forwarding agents are engaged/appointed by manufacturer of goods (both excisable and non-excisable goods), 2.2 Normally, there is a contract between the principal and the clearing and forwarding agent detailing the terms and conditions and also indicating the commission or remuneration to which the C F agent is entitled. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1997 the value of taxable service rendered by a clearing and fordwarding agent has been defined as the gross amount charged by such agents from the client for the services of clearing and fordwaring operations in any manner. However, under service Tax rules it has been provided that the value of taxable service in relation to services rendered by clearing and forwarding agents to a client shall deemed to be the gross amount of remuneration or commision (by whatever name called) paid to such agent by the client engaging such agent (Notification No. 27/97-ST refers). 2.5 For ther services rendered, the C F agent receives commission or remuneration which usually consists of two components: (I) Minimum commission on a flat rate or turnove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... houseing, maintenance and repair of vehicles. 3.2 Under the Rent-a-cab Scheme, 1989 the operator is required to maintain a register for each vehicle incorporating particulars as regards the hiring of the same in the format prescribed under the Scheme. Further, the operator under Rule 9 of the Scheme is required to collect hire charges from a foreign national or a non-resident Indian, only in foreign exchange. 3.3 The taxable service rendered by a Rent-a-cab scheme operator means any service provided to any person, by a rent a cab scheme operator in relation to the value of taxable service in relation to the servie provided by a Rent a cab scheme operator to any person, shall be the gross amount charged by such operator from such person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 97-Service Tax dated 11.7.97 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 clearing and tax in relation to the services provided by a clearing and forwarding agent shall be the person who engages a clearing and forwarding agent and by whom remunderation or and commission (by whatever name called) is paid for such services to the said agent and the person responsible for collecting the service tax in relation to the services provided by rent-ac-cab scheme operator shall be the operator who raises the bill for services rendered to any person by such operator. 4.2 Rules relating to levy of service tax on other services are already in exi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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