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Service Tax on Courier to Courier

2420 views 3 replies
Hi Friends:

I want to Know whether service tax is applicable on a courier company/agency when it raises an invoice on another courier company.

For Ex: If DHL Express (courier company) raises invoice on Bluedart (another courier company) then Will DHL charge service tax on Bluedart?

Please reply.

Thanks

Ankit
Replies (3)
I believe DHL should charge service tax.

Because DHL will be providing courier service on behalf of blue dart.(if this is the case i.e, invoice is raised only for the courier service).

And another point to be considered is that there should not be double taxation i.e, if the blue dart company has already charged the service tax from its customer and that customers courier is handled by DHL then DHL should not charge service tax.

If this is not the case and DHL is not charging the said tax then it will be the responsibility of Blue Dart to deposit the said tax with the Govt. either it can collect from DHL or it should pay from its own pockets!

Hope this may give you some idea!    
hi

as per new finance bill 2006 'commercial concern " has been replaced by " any person" but service receiver should be CLIENT/CUSTOMER & NOT "TO ANY PERSON"

Since DHL AND BLUE DART are not clients/customer so no service tax should be charged on that.

NIKHIL GUPTA
CA-NOV 2005
ALL INDIA TOPPER INDIRECT TAX
For DHL customer will be blue dart when it is renedering service to blue dart or on behalf of Blue Dart.

Blue Dart can take credit of input service tax.


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