Indian Service Tax
Transport Of Goods By Air
Effective Date
10/9/2004.
Authority
Finance (No.2) Act, 2004
Rate of Service Tax
10% - Cess 2% of 10% = 0.2. Total ST = 10.2%.
Definition
"aircraft" has the meaning assigned to it in clause (1) of Section 2 of the Aircraft Act, 1934 (22 of 1934), [Section 65 (3a)]
"aircraft operator"means any commercial concern which provides the service of transport of goods by aircraft; [Section 65 (3b)]
Taxable service
Taxable service means any service provided to any person, by an aircraft operator, in relation to transport of goods by aircraft; [Section 65 b (105) (zzn)]
Value of taxable service
Gross amount
Exemptions
See Notification No. 18/2004-ST, dt. 10/9/2004 at the end of the Chapter of "Airport Services".
Person liable to pay: Transport of Goods by Air Service Provider
Head of Account
To be issued.
Main text of Department Circular/TN:
F.No. B2/8/2004-TRU
Date 10/9/2004
Transport of goods by air
Services provided by an aircraft operator (i.e. commercial concern like an airlines) in relation to transport of goods by an aircraft falls under this category. Thus, in addition to the actual air-freight charges, all charges collected towards storing, handling, loading/unloading (done in relation to air transportation of cargo) by an airlines are also chargeable to this levy.
Extension of service tax on air travel agents and rail travel agents to other travel agents:
At present, service tax is leviable on air travel agents and rail travel agents. Travel agents of other modes of transport (road, water) are not covered under service tax. The scope of service tax has been extended to include all travel agents. The taxable service is the service provided by travel agent in relation to the booking of passage for travel by modes other than air and road. The value of taxable service would be the commission/fee charged by the travel agent from the customer.
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