sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Service Tax »
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?
 E-way relief, for now, to e-commerce, courier firms sending small orders

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.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions