Road transportation service provided by freight forwarders

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2016 Respected Members,

My client is a Freight Forwarder and Custom House Agent. They also provide services of transportation of imported goods from Dry Port (ICD) to Importers location or from Exporter's location to Dry Port (ICD) by road. However they themselves are not Goods Transport Agency as neither they have any Commercial Vehicle nor they issue any Consignment note in any form to the consignor/consignee. They simply use the services of other GTA Service providers for transportation of goods. Service Tax on this Input service is duly paid through reverse charge or forward charge as applicable.
I find my clients services in negative list under point no. (p) which is as follows:-
Services by way of Transportation of Goods-
(i) by road except the services of -
(a) A Goods Transport Agency; or
(b) A Courier Agency

Facts are My client is neither GTA nor Courier Agency and they provide Services by way of Transportation of Goods by Road, So they are eligible for this particular entry in the negative list. Hence Client don't charge Service Tax on his Transportation Sale Bills.

My Question to the Experts are whether I am right in this classification or not. If not then please suggest me How these services will be taxed?

Thanks in Advance

CA Saurabh Singh

CA Saurabh Singh (Expert)
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16 June 2016 Hi,
The clearing & forwarding agent has been classified under the taxable services, the definition of C&FA has been defined as under:
"Clearing and Forwarding Agent" means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operations in any manner to any other person and includes a consignment agent;
Hence it covers the above mentioned category and service tax shall be levied accordingly

Rupesh Jain

Rupesh Jain (Expert)
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16 June 2016 service come under the clearing and forwarding agency and charge service tax on its services, and reimbursement exp. bill not required to charge service tax.

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