1. COURIER SERVICES
Taxable Activities:-
ü Any personengaged in
ü Door – to - door transportation
ü of documents, goods or articles
ü directly or indirectly.
‘Door – to – door transportation’ covers those cases where customer goes to the courier’s office and delivers his documents etc. Vijayanand Roadlines Ltd. (CESTAT),
Valuation:-
→ In case of VPP, value of parcel recovered from the customer will be exempt. Only service charges recovered in relation to door – to - door transportation are taxable.
→ Where courier agency undertakes comprehensive business and provide warehousing, packing etc., any amount charged in relation to such services shall also be taxable if they are relatable to door – to - door transportation.
Export:-
Covered under Rule 3(1)(ii) of Export of Service Rules, 2005, therefore it can be exported without payment of service tax if the following conditions are satisfied -
i) Service is wholly or partly performed outside India.
ii) Service provider receives the payment in Convertible Foreign Exchange.
iii) Such serviceis delivered outside India (prior to 1-3-2007) is provided from India (from 1-3- 2007), and is used outside India.
CAclubindia
