GTA Service – Withdrawal of
DGST Circular confirmed
It is now confirmed that the
controversial DGST clarification dated 30-3-2005, raising lot of confusion and
resultant notices for payment of service tax, was indeed withdrawn by the same
DGST on 11-4-2005.
The Addl. Director Mr. Sanjay
Pant has communicated to the Chief Commissioners that the said clarification
issued by DGST, denying abatement of 75% in respect of Goods Transport Agency’s
Services to the payer of service tax other than GTA, was withdrawn on 11-4-2005.
The following is the text of the confirmation letter :-
Sub:- Applicability
of Notification No.32/2004— Service Tax dated vis-a-vis Notification
No.35/2004-ST dated 3-12-2004 –Objection raised by CERA on the issue –Several
references are received on the above issue. This Directorate had issued a
clarification vide letter of even No. dated 30-3-2005, that the benefit of
Notification No.32/2004-ST dated 3-12-2004 is not available in cases where the
provision of Notification No.35/2004-ST dated 3-12-2004 are applicable.
However said letter dated 30-3-2004 of this office had been withdrawn by this
Directorate vide letter of even No. dated 11-4-2005 (copy enclosed.)
This is for kind information
again.
Yours faithfully,
(SANJAY PANT)
Additional Director
One cannot imagine the kind of
heat generated by the said letter of DGST which was issued in sheer high-handed
manner, having least regards to the provisions of the law and the circulars
issued by the CBEC, which is the highest authority in this regards. The entire
machinery of the Department was after the poor assessees holding the circular in
one hand and threatening notices in the other. Lot of proceeding also started
and the poor assessee was at loss to prove his innocence and withdrawal of the
said circular. At last, he will have some solace now.
Notification No. 24/2006
-
Notification No.
24/2006-Service Tax, dated June 27, 2006 is issued to rectify the inadvertent
error in Rule 6(2) of the Service Tax (Determination of Value) Rule 2006. It
is now provided that rail fair collected by rail travel agent in respect of
service provided by him will be excluded from the value of taxable service
instead of “the rail fair collected by air travel agent in respect of service
provided by him”.
Review of
Circulars/Instructions/ Clarifications
The Government has decided to
undertake an extensive review of all circulars, instructions and clarifications
on the matters relating to levy and collection of service tax, keeping in view
the changes in service tax law, court pronouncements and other relevant
considerations. For this purpose, the Government has appointed Mr. T. R. Rustagi
to undertake such review and make recommendations to the Government.
Views, comments and suggestions
from trade and industry, the Departmental officials and all other concerned are
invited on i) circulars, instructions, clarifications which are needed to be
withdrawn or modified ii) nature of clarifications are required to be issued for
any specific issues and iii) any significant problem or issue relating to
service tax which is not covered by any of the existing circulars / instructions
/ clarifications but which deserves to be considered by the Government by issue
of clarifications in the interest of uniformity of practice.
The comments, views and
suggestions may be sent, preferably by E-Mail before 3-7-2006 at the following
address :-
-
Shri Arvind Madhavan,
Technical Officer (TRU), Room No.153, North Block, New Delhi – 110001 (Email :
tru.finmin@gmail.com)
-
Shri. T.R. Rustagi, SD-84,
Tower Apartments, Pitampur, Delhi – 110001 (Email : trrustagi@gmail.com )
