SERVICE TAX on Barge Hire Charges / Barging / Lighterage Operation

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

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.

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.

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.

thnx