Courier agency means any person engaged in the door to door transportation of time sensitive documents, goods or articles utilizing the services of a person either directly or indirectly to carry or accompany such documents, goods or articles.
Sec 65(105)(f) says
“Taxable services means any service provided or to be provided to any person by a courier agency in relation to door to door transportation of time sensitive documents, goods or articles”
In above definition it is cleared that there are below features for courier services:
- The service can be provided to any person (before 1-5-06 it was commercial concern).
- It must be door to door transportation of time sensitive documents, goods or articles. These are the basis by which a courier services is different from goods transport agencies.
Some transport agencies undertake door to door transportation of goods or articles for speed transportation. Such services are known as “Express Cargo service”. But as there is door to door transportation and time sensitivity, that’s why these are included in courier services not in goods transport.
In international courier it is assumed that who is paying for service tax is getting services. So the person paying the charges will bear service tax according to their country rules. i.e. if an Indian send courier to foreigner by Indian courier and pay the charges then Indian will pay service tax, but if that foreigner is paying the charges then it is treated as export of services.
If that courier agency uses other agency to send the courier to other place then this agency is called co-loader. This co-loader takes courier from agency and dispatches it to other office of that agency. Services of this co-loader are not taxable in courier charges, because they are not delivering door to door basis.
The service tax will be charged on full amount, if it includes the freight charges, warehousing charges, packing etc then service tax will be charged on full amount.
This is my views and observation on this topic, please discuss/advice if there is any mistake/new amendment/comment.
Thanks in advance
CAclubindia
