Service Tax on Customs Agent Services

On 09 August 2022, RMCD issued a Guide on Customs Agent Services. Generally, this guide is to let us know about the service tax treatment on customs agent services.

Key takeaways:

You will understand 5W:

1. Who is Customs Agent?

2. What is the threshold for registration under Service Tax?

3. What types of services are subject to service tax?

4. What types of services are not subject to service tax?

5. What are the responsibilities of the registrant?

Who is “Customs Agent”?

Who acts on behalf of importers and exporters to carry out the business to relieve goods from customs control.

What is the threshold for registration under Service Tax?

·There is no threshold for Customs Agent.
All customs agent must apply for service tax registration within 14 days from the date of approval as a customs agent.

What types of services are subject to service tax?

1. Preparing or amending customs declaration

2. Presenting goods for customs declaration

3. Documentation

4. Handling / forwarding

5. Examination / attendance to examination

6. Sealing

7. Electronic Data Interchange (EDI)

8. Overtime (relating to clearance of goods only)

What types of services are not subject to service tax?

1. Haulage services

2. Services provided by shipping agents and freight forwarders

What are the responsibilities of the registrant?

1. Charge service tax on taxable services

2. Issue an invoice and receipt to customers

3. Submit SST-02 Form and pay service tax before the deadline

4. Keep proper record

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