CARGO HANDLING SERVICE

Date of Introduction :

16th August, 2002 (Notification No.8/2002ST dated 01.08.2002)

Definition :

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 container freight terminal or any other freight terminal, for all modes of transport and cargo handling services incidental to freight, but does not include handling of export cargo or passenger baggage or mere transportation of goods.
(Section 65(21) of Chapter V of Finance Act, 1994)

Taxable Service :

Any service provided to a person by a cargo handling agency in relation to cargo handling services.
(Section 65(90)(zr) of Finance Act, 1994)

Scope of the Service :

Examples of cargo handling services are services provided in relation to cargo handling by Container Corporation of India, Airport Authority of India, Inland Container Depot, Container Freight Station etc. This is an illustrative list. There are several other firms that are engaged in cargo handling.
( Board’s F.No.B11/1/2002-TRU dated 01.08.2002)

Value of Taxable Service :

The gross amount charged by the service provider for such services rendered by him.
(Section 67 of Finance Act, 1994)

Who is responsible to pay Service Tax :

The service provider i.e. Cargo Handling Agency is responsible for payment of Service Tax.

Exemption & Exclusion :

Handling of export cargo, passenger baggage, mere transportation of goods, cargo handled by Airport Authority of India for export are excluded from payment of Service Tax. Cargo handling services render in relation to agricultural produce or goods intended to be stored in cold storage are exempted from payment of Service Tax vide Notification No.10/2002 dated 01.08.2002

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