« Service Tax » Open DEMAT Account in 24 hrs  Tax e-filing: New banks enabled for online tax payments via e-pay tax service Check the entire list of banks  Income Tax Bill 2025: Changes under the new bill that taxpayers must know. Check FAQs  ITR filing: Know the new Budget 2025 rules for filing updated income tax returns  New Income Tax Bill 2025: What are expected changes and how will they affect you?  From tax changes to capex growth 5 key expectations from Emkay Global for Indias economy  Income Tax Returns: What are the consequences of not verifying your ITR within 30 days  Income Tax: Want to update your ITR? You can file an updated tax return; Here s all you need to know  ITR Filing 2024: How to check income tax refund status online using PAN card? A step-by-step guide  ITR Filing 2024: Which Income Tax Regime Is Better For NRIs? Check Expert Inputs Here  ITR filing 2024: How to check income tax refund status online? A step-by-step guide  Income Tax Return: Why should you wait till June 15 to file your ITR for FY24? «  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.