New Delhi, July 11: The centre has decided to impose service tax on clearing and forwarding agents and rent-a-cab scheme operators with effect from July 16.

According to an official press release issued here on Friday, the service tax will be charged at the rate of five per cent and computed on the gross amount charged from customers. The service tax has been imposed with an object to broadbase the revenue sources.

The clearing and forwarding agents who undertake, inter alia, services of receipt, warehousing, despatch, record maintenance and account of goods on behalf of the principals and appoint or engage such agents. In respect of this service the person responsible for collecting the service tax was the person engaging the services of the gross amount of remuneration of commission paid to the clearing and forwarding agent by the principal engaging such agent. The rent-a-cab scheme operator, who holds a licence under the rent-a-cab scheme, 1989, framed by the central government under the Motor Vehicles Act, 1988. The person responsible for collecting the service tax is the rent-a-cab scheme operator.