« Top Headlines » Open DEMAT Account in 24 hrs  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Why you need not rush to file your ITR immediately «  New body to look into gems and jewellery tax structure... Land details impeding SEZ notification process... » Notice to firms for claiming service tax abatement July, 12th 2006 There appears to be lack of clarity regarding availability of 75 per cent abatement under service tax for categories like coroporates, cooperative societies and partnership firms, which are not goods transport agencies.    Sources said the service tax departments in Thane, Mumbai and Kolkata had begun issuing show-cause notices to companies on the grounds that they had underpaid the service tax under the category of goods transport service by wrongfully claiming abatement.    Under the present norms, service tax under the category transport of goods by road has been imposed on the goods transport agency and the service recipients (consignor or consignee) of seven specified categories including a factory registered under the Factories Act, companies, societies, cooperative societies, excise dealers and partnership firms.    The confusion has arisen because the revenue department had on January 1, 2005 provided an abatement of 75 per cent of the gross amount charged to a customer by a goods transport agency.    An abatement of 75 per cent means that the service tax can be levied only on the 25 per cent of the gross amount charged for providing this taxable service.    The service tax directorate later on March 30, 2005 notified that the abatement benefit would not be available to the seven categories of persons who are liable to pay service tax ie consignor or consignee. This notification was, however, withdrawn in April, 2005.    When contacted, service tax expert JK Mittal said the action of the department prima facie appeared to be overreaching as the law provided abatements, and did not prevent a person liable to pay service tax for availing abatement, subject to fulfillment of conditions under the law.