Practical Accounts And Taxation
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The assessee, a custom house agent, was engaged in booking the space for cargo transportation in airlines or ships where he paid the charges for booking of space to the respective airlines or agents. It charged the freight from the customer for the transportation of the goods, when the consignment of the customer was sent using the space booked.
As per the department, the activities undertaken by the assessee would fall under the category of 'Business auxiliary service' for which the assessee filed an appeal in the Tribunal against the same.
According to the Tribunal, the notional surplus was earned from purchase and sale of space and not by acting on behalf of client who had space or slot on a vessel. Hence, the demand could not be sustained under the category of 'Business auxiliary service' and the doubted order was to be set aside.
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