Taxable service means any service provided to any person, by a member of a recognised association or a registered association

Indian Service Tax

Forward Contract Services

Effective Date : 10/09/2004.

Authority: Finance (No.2) Act, 2004

Rate of Service Tax: 10% - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definitions

"Recognised Association" has the meaning assigned to it in clause (j) of Section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952), [Section 65 (89a)]

"registered association"has the meaning assigned to it in clause (jj) of Section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952), [Section 65 (89b)]

Taxable service

Taxable service means any service provided to any person, by a member of a recognised association or a registered association, in relation to a forward contract, [Section 65 (105) (zzy)]

Value of taxable service: Gross amount

Exemptions: See Notification No. 18/2004-ST, dt. 10/9/2004 at the end of the Chapter of "Airport Services".

Ready Delivery Contracts.

Person liable to pay: Forward Contract Service Provider

Head of Account: To be issued.

Main text of Department Circular/Trade Notice

RNo. B2/8/2004-TRU, Date: 10/9/2004

10. Forward contract services: As per the provisions of Forward Contract (Regulation) Act, 1952, a forward contract is a contract for delivery of goods, which is not a ready delivery contract. For commodities notified under the Act, forward contracts can be entered into only through members of association recognized under that Act. For other commodities, future trading can be done through associations registered with Forward Market Commission. The levy of service tax under this category is on the services provided by members of such associations (commonly called as commodity exchanges) to any person in relation to forward contracts.

Notification

Exemption

[Notification No. 18/2004-ST, dt. 10/9/2004]

For full text see under "Airport Services".