Few days ago, SFFLA issued Circular for customs agents. The list of services that are taxable services for customs agents are :-
1) Forwarding Fee
2) documentation Fees
3) Handling charges (base on cargo/container)
4) Attending to cargo Examination
5) Overtime Fee to attend cargo presentation
6) SMK fees to submit customs declaration
7) EFT fees
**The services tax rate chargeable for these services is 6%.
* If you are a customs agent and have not been registered before, you may register online by submitting SST-01 to MySST system.
* If you were a freight forwarder previously registered under GST and find that you have been automatically registered under SST but that you do not perform services as customs agent and your services are not taxable under SST 2018, you may have to write in to customs to be de-registered.
* The guide on customs agents also give several scenarios on when service tax is applicable or otherwise, in particular, example 3, where a customs agent may appoint a third party to represent him in performing physical goods inspection. In doing so, the fee charged by the third party to the customs agent which is subsequently charged to the customer whether it includes a mark-up, it will be subjected to service tax.
* If a Freight forwarder appoint a customs agent to handle the customs clearance of goods and he recovers this charge by customs agent from his customers, whether it includes a mark-up, the charge is not subjected to service tax.
