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TMI BlogService tax on freight forwarders on transportation of goods from IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... New Delhi, the 12 th August, 2016 To, All Principal Chief Commissioners / Chief Commissioners of Central Excise/Service Tax Principal Directors General (Director General Goods Service Tax/ DGCEI/ Systems/Audit/Tax Payer Services/Performance Management Chief Commissioner AR CESTAT All Principal Commissioners/Commissioners of Central Excise/Service Tax All P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hence not liable to service tax. The provisions of rule 9 of the POPS Rules 2012 , should also be kept in mind wherein the place of provision of intermediary services is the location of the service provider. An intermediary has been defined, inter alia, in rule 2(f) of the POPS Rules 2012 , as one who arranges or facilitates the provision of a service or a supply of goods between two or mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder may be considered to be an intermediary under rule 2(f) read with rule 9 of POPS since he is merely facilitating the provision of the service of transportation but not providing it on his own account. When the freight forwarder acts as an agent of an air line/carrier/ocean liner, the service of transportation is provided by the air line/carrier/ocean-liner and the freight forwarder is m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a to a place outside India. He is bearing all the risks and liability for transportation. In such cases they are not covered under the category of intermediary, which by definition excludes a person who provides a service on his account. 3.0 It follows therefore that a freight forwarder, when acting as a principal, will not be liable to pay service tax when the destination of the goods is from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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