"Steamer Agent" is a person who undertakes,
either directly or indirectly.
to perform, any service in connection with the ship’
husbandry or dispatch including the rendering of administrative
work related thereto; or
to book, advertise or canvass for cargo for or on behalf
of a shipping line; or to provide container feeder services
for or on behalf of a shipping line;
Q.2
What is the taxable service in case of
services provided by a Steamer Agent?
Ans.
The taxable service provided by a steamer
agent to a shipping line, is the service in relation to a
ship’s husbandry or dispatch or any administrative work related
thereto as well as the booking, advertising or canvassing
of cargo, including container feeder services.
Q.3
What is the value of taxable service in
case of Steamer Agent?
Ans.
The value of the taxable
service in relation to service provided by a steamer agent
to a shipping line, is the gross amount charged by such agent
from the shipping line for services in relation to a ship’s
husbandry or dispatch or any administrative work related thereto
or in relation to the booking, advertising, or canvassing
of cargo container feeder services including the commission
paid to such agent.
Steamer agents incur various types of expenses on behalf of
the shipping line such as pilottage and berth hire charges,
Indian Coast light dues paid to the port authorities, cargo
expenses paid to port authorities and transporters such as
CONCOR/railways, private transporters, chartered accountants
fee, income tax, brokerage paid on export cargo, ship handling
expenses paid to stevedoring agents. For all the above charges
the Steamer agent is ordinarily reimbursed by the shipping
line. Further, the steamer agent bills the principals i.e.
the shipping line, for two types of service charges – husbandry
fee, which they charge for a ships husbandry and the agency
commission, which is paid by the shipping line on the import
and export cargo. These commissions are usually paid as a
percentage of the net ocean freight (basic freight) which
is clearly indicated in the agreement entered into between
the steamer agent and shipping line.
In relation to the steamer agent, the service charges will
constitute the husbandry fee as well as the agency commission
on import/export cargo. Other expenses incurred by the steamer
agent on behalf of the shipping line shall not be taken into
account.
Q.4
Is the registration in respect of Steamer
Agents allowed only of their seaport offices or the branch
offices also ?
Ans
Only sea port offices
of the steamer agent which are raising the bill to the shipping
lines should be registered for the purposes of Service Tax.
Branch offices in ICDs which are more in the nature of sales
offices and which do not raise the bill, would not have to
be registered.
Q.5
Is the container handling service provided
by Steamer Agent to be charged to the Service Tax?
Ans
Yes. The container handling
service provided by Steamer Agent and payment received thereof,
would be liable for payment of Service Tax under the category
of service provided by the Steamer Agent.
