« Service Tax » Open DEMAT Account in 24 hrs  Government Proposes Tax Relief for Offshore Funds and Electronics Contract Manufacturing: Key Changes Explained  Income Tax Refund Adjustment Against Old Tax Demands: What AY 2026–27 Taxpayers Should Know Before Claiming a Refund  ITR filing 2026: Here are the 7 income tax notices you may receive after filing your return and what they mean  ITR filed and verified? Here's how the Income Tax Department spots mismatches—and when it sends a notice  ITR Filing 2026: CBDT Introduces 6 Major E-Filing Portal Upgrades Ahead of Peak Tax Return Filing Season  ITR Filing 2026: Sold Shares, Property or Crypto? Key Tax Rules You Must Know Before Filing Your Income Tax Return  ITR filing 2026 Secondary address field is now mandatory here s how it can help taxpayers  New GST Rates: When will changes in GST rates take effect? What's the GST on medicines? | Top FAQs answered  New Income Tax Bill 2025: 3 key changes that could make ITR filing easier  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 «  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.