Impact of negative list to cargo handling services

Cargo handling service does not include mere transporation of goods. Mere transportaion of goods is covered under GTA service, where service receiver has to pay service tax @ 12.36% on 25% of taxable service. Cargo handling service include packing, unpacking, stuffing, destuffing and transporation.

Section 65(23) which defines cargo handling service includes services of packing together with transportation of cargo or goods, with or without one or more other services like loading, unloading, unpacking, under cargo handling service. With this amendment, packing with transportation will be classifiable under cargo handling service only and Service Tax will be levied.