Courier services under service tax
“Courier Agency” means a 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.
“Taxable Service” means any service provided or to be provided to any person, by courier agency in relation to door-to-door transportation of time-sensitive documents, goods or articles.
The Board vides Circular No.96/7/2007-ST dated 23.08.2007 on Courier Service has clarified the following issues:-
|005.01 / 23.08.07||Some transporters undertake door- to-door transportation of goods or articles and they have made special arrangements for speedy transportation and timely delivery of such goods or articles. Such services are known as ‘Express Cargo Service’ with assurance of timely delivery.||The nature of service provided by ‘Express Cargo Service’ provider falls within the scope and definition of the courier agency. Hence, the said service is liable to service tax under courier agency service [section 65(105)(f)].|
|005.02 / 23.08.07||“Angadia” undertakes delivery of documents, goods or articles received from a customer to another person for a consideration.
|Angadiasare covered within the definition of ‘courier agency’ [section 65(33)]. Therefore, such services provided byangadia is liable to service tax under courier agency service [section 65(105)(f)].|
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.