« Service Tax » Open DEMAT Account in 24 hrs  ITR 3 What is ITR 3 Form & How to File ITR-3?  ITR Filing 2024: How To Claim Tax Refund Online, Check Step-by-step Guide To Know Status  Income tax return filing for FY23-24: Check details of Form 16 issue date, ITR forms  How to maximize tax benefits for senior citizens in India  Income tax return filing: ITR filing 2024 date is upon us, but should you rush to file?  Income Tax Return AY 2024-25: ITR-1, ITR-2, ITR-4 Enabled for Online Filing; Check Details  New Tax Regime: What Is It? How Can You Opt For It? Comparison With Old One  6 Ways to Save Income Tax On New & Old Tax Regime for FY 2023-24  Income Tax SFT return filing due date extension: Facility to remain open for a couple of days Latest news  Income tax filing: Waiting for your Form 16? Here is what you need to know  Salaried? Rental tax calculation rules you should know before ITR filing in 2023 «  Govt asks industry to be ready for used car imports... Poland wants to improve its trade balance with India... » Amendment Concerning Service Tax on Chit May, 26th 2008 The Central Government has issued notification. No. 27/2008-ST dated the 27th May, 2008, amending notification No. 1/2006-ST dated the 1st March, 2006, prescribing abatement in lieu of CENVAT Credit for the purpose of payment of service tax for the services provided in relation to Chit. Chit is also known as chit fund, chitty, kuri. The person who is conducting the chit fund is known as foreman and is entitled for a commission. Subscribers of a chit are required to subscribe a certain sum by periodical instalments for a definite period. Each subscriber is entitled to the chit amount as determined in an agreed manner by turns with the liability to pay future subscription. Administration of chit is governed by the Chits Funds Act, 1982. Services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern in relation to asset management including all forms of fund management, is leviable to service tax under banking and other financial services [section 65(105)(zm) and section 65(12)of the Finance Act,1994]. Services provided in relation to chit falls under taxable service banking and other financial services. All India Association of Chit Funds has requested to prescribe abatement in lieu of input credit of taxes paid under CENVAT Credit Scheme. The request of the Association was examined by the Advisory Committee on Service Tax Abatements and based on the recommendations of the Advisory Committee on abatements. The Central Government has notified the abatement rate of 30% of the value of the taxable services i.e, commission earned by the person conducting the chit fund business. Provider of services in relation to chits opting to pay service tax availing abatement is required to pay service tax on 70% of the commission charged without availing input credit under CENVAT Credit Scheme.