Greetings!
Clarification
on levy of service tax on goods
transport by road
CBEC
has issued clarification on
the following issues relating
to levy of service tax on Goods
Transport Agency Service pursuant
to representation by the All
India Motor Transport Congress
(AIMTC)
1.
Any intermediary or ancillary
service such as loading/unloading,
packing/unpacking, transshipment,
temporary warehousing in relation
to transport of goods and are
included in the invoice issued
by the GTA, and not by any other
person, such service would form
part of GTA service and, therefore,
the abatement of 75% would be
available on it.
2.
Where service is provided by
a person who is registered as
GTA service provider and issues
consignment note for transportation
of goods by road in a goods
carriage and the amount charged
for the service provided is
inclusive of packing, then the
service shall be treated as
GTA service and not cargo handling
service.
3.
In respect of time sensitive
transportation of goods by road
in a goods, it is clarified
that so long as, (a) the entire
transportation of goods is by
road; and (b) the person transporting
the goods issues a consignment
note, it would be classified
as ‘GTA Service’.
Click
to view Circular No. 104/ 07
/2008-ST dated 06/08/2008.
Provisional
attachment of property
Service
Tax (Provisional Attachment
of Property) Rules, 2008
Section
73C of the Finance Act, 1994
(hereinafter referred to as
the Act) provides for provisional
attachment of property for the
purposes of protecting the interests
of revenue during the pendency
of any proceedings under section
73 or section 73A of the Act.
Service
Tax (Provisional Attachment
of Property) Rules, 2008 setting
out the Procedure for provisional
attachment of property, the
property that can be attached,
Obligations of person whose
property has been attached provisionally
and Period for which order
of provisional attachment of
property remains in force has
been notified vide Notification
No. 30/2008 dated 01/07/2008.
Instructions
regarding provisional attachment
of property
CBEC
has issued a circular explaining
the provisions of Service Tax
(Provisional Attachment of Property)
Rules, 2008.
The
circular specified the following
types of offences committed
by a service provider on an
exporter may be considered for
provisional attachment of property:-
(a)
Provision of a taxable service
without the cover of an invoice
or any other document, as prescribed,
and without payment of tax;
(b)
Provision of a taxable service
without declaring the correct
value for payment of service
tax, where a portion of value
of taxable service, in excess
of invoice price, is received
by him or on his behalf but
not accounted for in the books
of account.
(c)
Taking of CENVAT credit without
the receipt of goods or services
specified in the document based
on which the said credit has
been taken;
(d)
Taking of CENVAT credit on invoices
or other documents which a person
has reasons to believe as not
genuine;
(e)
Issue of service tax invoice
or any other document, without
providing or to be providing
a taxable service, as specified
in the said invoice or other
document;
(f)
Claiming of refund or rebate
in a fraudulent manner such
as on invoice or other documents
which a person has reason to
believe as not genuine.
The
provisional attachment of property
shall be resorted only in a
case where the service tax or
CENVAT credit alleged to be
involved is more than Rs. 25
lakh (twenty five lakh).
Click
to download Notification No.
30/2008 dated 01/07/2008 and
Circular No. 103/ 06 /2008-ST
dated 01-07-2008
Service
Tax Exemption for Goods Carriage
to GTA
Service
tax on supply of goods carriage
to GTA for use in transport
of goods is attracted, w.e.f.
16.05.2008, under sub-clause
(zzzzj) of clause (105) of section
65 of the Finance Act as services
provided in relation to supply
of tangible goods for use, without
transfer of possession and effective
control.
Notification
No.29/2008-Service Tax, dated
26.06.2008 exempts fully the
levy of service tax on supply
of goods carriage to GTA for
use in transportation of goods
by road.
Service
Tax on pre-closure under banking
and other financial Services
Tax
Research Unit ,Government of
India,Ministry of Finance, Department
of Revenue has clarified that
service tax is leviable on the
amount collected as pre-closure
/ fore-closure charges in relation
to lending by banks and other
financial institutions.
It
is clarified that any amount
collected by the service provider
on account of lending is either
interest or service charges.
Pre-closure / foreclosure charges
are not charges collected for
delayed payment. These charges
not being 'interest' are to
be appropriately treated as
consideration for the services
provided and accordingly leviable
to service tax under Section
65(105)(zm).
Click
to download Notification and
Circular
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