Business Auxiliary Services - Ship broking covered thereunder

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..... go reaches its destination. Hence, the activities undertaken by ship brokers are nothing but provision of services on behalf of client for a consideration akin to that of a commission agent. As per Section 65(19)(vii)(a) of the Finance Act, 1994 , "Commission agent" means :- 'any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of servi .....

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..... rgo movement till it reaches the destination. Ship broker also ensures that freight is paid after cargo reaches the destination. Hence the activities undertaken by ship broker are of commission agent and leviable to Service tax under Business Auxiliary Service (BAS) of Section 65(105)(zzb) of Finance Act, 1994. 3. In view of the above, it is clarified that the service rendered by ship broker .....

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