COURIER AGENCIES

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What is a Courier Agency? What is the taxable service provided by them? 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. What is the value of the taxable service in relation to Courier Service? 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. Is the facility of Centralised registration available to Courier Agencies? 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 Are services provided by Co-loader chargeable to Service Tax separately? 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. 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. 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. Are Express Cargo Service provider, who assure delivery of documents, goods or articles within stipulated time period, liable to pay tax as Courier Agencies? 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. Do the Speed Post services provided by Department of Post attract Service Tax? No. Since the Department of Post is not a commercial concern, the Speed Post services provided by it do not attract Service Tax. Are the Angadias liable for payment of Service Tax ? 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. Is there any exemption from payment of Service Tax on services provided by Courier agencies? 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)

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