Is loading/unloading within factory premises for transportation of goods

Indian Service Tax

Clarifications

Is loading/unloading within factory premises for transportation of goods in connection with import or other cargo covered under "Service provided by Cargo handling agencies" as provided under Section zr to S. 90?

Reply

Yes - The Chairperson clarified that, as per clause (21) of the Finance Act, 1994, the term "cargo handling service" means loading, unloading, packing or unpacking of cargo and includes cargo handling services provided for freight in special containers or for non-containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport and any other service incidental to freight, but does not include handling of export cargo or passengers baggage or mere transportation of cargo. The taxable service as per sub-clause zr or clause (90), is any service provided to any person by cargo handling agency in relation to cargo handling services.

(Authority: RAC on 30.12.2002, Mumbai-II Commissionerate)

Cargo Handling Services

2.1 The Annexure clarifies that individual undertaking the activity loading or unloading of cargo by hiring labour will not come under the purview of service tax as a cargo handling agency. What is the implication of this clarification?

The Chairman replied that if any individual in his day to day life hires labour for handling of goods i.e. for loading or unloading of goods, it will not come under the purview of service tax as a cargo handling agency. For example an individual hires labour for shifting of his own household goods, then such a person shall not be termed as a person rendering the service of Cargo-Handling.

2.2 Cargo-Handling Service in relation to goods meant to be stored in cold storage have been exempted from the levy of service tax. The term "cold storage" needs to be identified.

Reply

The Chairman replied that in relation to cargo handling service, by Notification No. 10/2002-S.T., dated 1.8.2002, taxable service provided to any person by a cargo handling agency in relation to agricultural product or agricultural goods intended to be stored in a cold storage has been exempted from the whole of the service tax leviable thereon under Section 66 of the said Act. The term cold storage has to be understood accordingly as a place where goods/product are stored at a low temperature.

(Authority: RAC on 6.9.2002 of Vadodara Commissionerate)