Urgent: whether service tax is applicable

Sowmya P K (Chartered Accountant) (251 Points)

16 September 2011  

Hi All

 

To avoid cash payments at checkpost, a logistics company has entered into an agreement with a vendor to route the payments through bank. Payment is made to the vendor in the form of "Checkpost handling charges". Whether this is a taxable service for the vendor? The agreement is drawn up to provide services of "clearance of vehicles from checkpost".

Thanks in advance