| Q.1
|
What is a ‘Courier Agency’? What is the
taxable service provided by them?
|
| Ans. |
Courier Agency means a commercial concern
engaged in the door to door transportations of time sensitive
documents, goods or articles, utilising the services of a
person either directly or indirectly to carry or accompany
such documents, goods or articles. Services provided by a
Courier Agency to their client in respect of door to door
transportation of time sensitive documents, goods or articles
constitute taxable service for the purpose of the levy of
service tax.
|
| Q.2 |
What is the value of the taxable service
in relation to Courier Service?
|
| Ans. |
Value of the taxable service in relation
to Courier Service is the gross amount charged by such agency
from the customer for services in relation to door to door
transportation of time sensitive documents, goods and articles.
|
| Q.3 |
Is the facility of Centralised registration
available to Courier Agencies?
|
Ans.
|
It was originally provided that a Service
Tax assessee has to obtain separate registrations in respect
of the offices or premises where from they would be carrying
on their business. However, in the case of courier agencies,
facility of centralised registration and collection has been
extended. A detailed procedure also has been set down for
the same. This facility has now been extended to all services
wherever Centralised billing pattern is followed
|
| Q.4 |
Are services provided by ‘Co-loader’ chargeable
to Service Tax separately?
|
| Ans. |
No, as `Co-loader’ is a company whose services
are engaged by a Courier Agency for handling part of the job
for delivery of articles, goods, documents, etc. they are
not providing any direct service to the customer. The client
is concerned only with the Courier Agency, for the services
and the co-loader is only a sub-contractor.
|
Q.5
|
Is any courier agency undertaking comprehensive
business and providing integrated transportation, warehousing,
packing, inventory management etc. liable to pay Service Tax
in respect of services provided by them in relation to warehousing,
packing, inventory management, etc.
|
| Ans. |
Yes, wherever the above facilities are relatable
to door to door transportation of documents, goods and articles
and are undertaken by the courier agencies themselves, the
charges for such facilities are correctly includible in the
gross amount.
|
| Q.6 |
Are ‘Express Cargo Service’ provider,
who assure delivery of documents, goods or articles within
stipulated time period, liable to pay tax as Courier Agencies?
|
| Ans. |
Yes. The nature of service provided by these
Express Cargo Transporters is the same as the services provided
by the conventional courier agencies. Therefore, these Express
Cargo Services are also liable to pay Service Tax.
|
| Q.7 |
Do the Speed Post services provided by
Department of Post attract Service Tax?
|
| Ans. |
No. Since the Department of Post is not a
commercial concern, the Speed Post services provided by it
do not attract Service Tax.
|
| Q.8 |
Are the Angadias liable
for payment of Service Tax ? |
| Ans. |
Yes, Angadias engaged in commercial activities
such as undertaking of delivery of the documents, goods, or
articles received from the customer to other end, are covered
by the definition of " Courier Agency" and are liable to pay
the Service Tax on the value of services provided by them.
|
| Q.9 |
Is there any exemption from payment of
Service Tax on services provided by Courier agencies?
|
| Ans. |
Yes, the services provided by the Courier
Agencies to United Nations, certain International Organisations
and specified Diplomatic Missions are exempted from payment
of service tax.
( Authority : Notification no. 45/98 dated
22/01/98 , 44/98 dated 22/1/98, 47/98 ST dated 24/4/98)
|
