C&F - Service Tax on Reimbursement of Expenses

Hi to all,

A C&F agent takes services of a Shipping Agency while discharging its own Service. The Shipping Agency raises Invoice on C&F Agent for Ocean Freight Charges. No Service Tax is charged by them( i am not aware of reason though, why?Maybe it is not a taxable service or maybe exempt)

C&F Agent in turn raises a single Invoice on his Client mentioning such Ocean Freight Charges(along with own Profit markup) and own service charges. However Service Tax is charged by them only on their own Service Charges, not on the Ocean Freight Charges.

My query is 'in the light of definition of 'Pure Agent', whether Service Tax has to be charged on such Ocean Freight amount or not?

Thanks in advance

Replies (1)

(In my view)

since they are having markup on the charges.. they are not pure agents and cannot be exempt for service tax.. they have to charge service tax on those charges also..

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