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SERVICE TAX on Barge Hire Charges / Barging / Lighterage Operation



Let me know " whether Service Tax is applicable to Barge Hire Charges / Barging / Lighterage Operations or not?"

If YES, let me know the effective date, Name of Service under which it is applicable and the notification, circular is any on this issue"

Thnx / Regards.



 4 Replies

Prakash Yedhula (Lawyer)     02 June 2008

The exact categorization of the service being provided by you can be decided only after going through the agreement entered into by you with the Port Authority. However on the face of it the service being provided by you appears to fall under the taxable service of Business Support Service

Rakesh Chitkara (Service Tax Consultant)     04 June 2008

I endorse this classification. It can not be Port Service, which has been clearly defined. Advise on the basis of such scanty information can be highly misleading. To determine exact classification, the exact nature of service actually rendered has to be considered. Even valuation rules may have to be referred to. Discuss the matter wrt all related aspects.

K.Prakash Babu (Advocate)     06 June 2008

This may fall under the newly introduced Service viz, " Supply of Tangible Goods for use".As Mr.Shreyas Thakkar is giving these assets on hire i.e., without transferring the ownership rights he is passing the possession and control over the goods for use by his customer and return. Hence his case will come under the purview of the service noted above. And this is effective from 15-05-2008.

Guest (n/a)     07 June 2008

Dear Sir,

First of all thanks for your response.

Formerly, I have also of the same idea, but the service "supply of tangible goods for use" defines in Notification No. 24/2008-Service Tax as follows:

"Services of supply of tangible goods for use, without transferring right of possession and effective control of tangible goods, provided to an exporter in relation to goods exported by the exporter"

Now, what if,

1. such services provided to other than exporter ie. Stevedores like us

2. such services provided for activities other than exporter ie. Shifting from anchorage to jetty or transferring from port to port.

hope your valued ideas reveals some more clarification on the points.


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