Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: list of goods taxed at 4% :: form 3cd :: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: VAT Audit :: due date for vat payment :: cpt :: ACCOUNTING STANDARD
 
 
« Service Tax »
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya
 Service tax waived for online train ticket booking till Dec 31
 Key challenges in implementation of Goods and Services Tax

Service tax roadblock ahead
June, 30th 2008

Service tax interpretation continues to be a contentious issue between the road transporters and the Government. Alleging that the Government is adopting a callous attitude towards their demands on service tax and toll rates, the All India Motor Transport Congress (AIMTC) has reiterated its threat of launching a countrywide, indefinite strike from July 2.

Although the Finance Ministry had recently exempted supply of transport vehicles to goods transport agencies (GTA) from service tax, the AIMTC says several service tax are yet to be resolved.

The bone of contention between the two sides is a set of show cause notices issued by the Service Tax Department to some of the GTAs on alleged service tax evasion on account of claiming of abatement benefits on cargo handling, and storage/demurrage charges.

Currently, cargo handling and storage/warehousing services separately attract service tax. Apart from these two, GTA services for transportation of goods by road was also under the service tax net, but had the benefit of 75 per cent abatement on the total amount.

GTA services

The interpretation of which activities constitute GTA services is causing friction between the two sides as abatement facility is available for all GTA services.

Now, the Revenue Department says that service tax will be applicable only on 25 per cent of the total value charged by GTAs towards freight services. However, the AIMTC contends that GTA services should logically cover all services (such as labour/cargo handling, storage/warehousing) offered for road transport.

Since GTAs collect the service tax from the consignor/consignee, it is not practical (on the Governments part) to now claim taxes for past transactions from GTAs, said AIMTC Chairman, Mr Charan Singh Lohara, adding that Government should have raised this issue much earlier.

The Revenue Department contends that the 75 per cent abatement was being enjoyed by GTAs on the total value mentioned on the consignment note which included cargo handling, storage and warehousing charges also. However, Mr Lahara says: Since it is trade practice for GTAs to offer labour/cargo handling and demurrage/storage facilities to consignors, the abatement facility should be on a transporters entire range of services.

Only on freight

The Revenue Departments contention is that service tax collections would get hit if GTAs were to claim abatement on the total amount in the consignment note (bilti). The intent is to provide abatement only on freight charges and not on storage, cargo handling and warehousing services, said Government sources.

In an attempt to resolve the issue, the CBEC top brass had convened a meeting last Thursday. However, the matter remained unresolved even as the Finance Ministry is confident that the procedural glitches can be sorted out.

Payment of service tax by transporters has been a controversial issue for many years, and transporters went on strike in 1997 and 2004 on the issue. The Indian transport industry with more than 48 lakh registered commercial vehicles, gives direct employment to about 2 crore people.

Additionally, AIMTC is looking for relief on highway toll charges and duties on diesel, among others.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Website Ranking Website Ranking Company Website Positioning Alexa Ranking Website Promotion Website top 10 ranking website top 10 promotion search engine result promotion Strategic Internet Marketing Website Optimization Website Ranking Factors

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