Prescribes effective rate of service tax on various services provided in relation to chit. - 27/2008 - Service Tax

Prescribes effective rate of service tax on various services provided in relation to chit TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA , EXTRAORDINARY GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No. 27/2008-Service Tax New Delhi , the 27 th May, 2008 G.S.R. (E). In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 1/2006- Service Tax, dated the 1 st March, 2006, vide number G.S.R. 115 (E), dated the 1 st March, 2006, namely:- In the said notification, in the Table, after S.No.4, and the entries relating thereto, the following serial number and entries shall be inserted, namely: - (1) (2) (3) (4) (5) "4A. (zm) Services provided in relation to chit. Explanation .- Chit means a transaction whether called chit, chit fund, chitty, kuri, or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount. - 70". (G.G. Pai) Under Secretary to the Government of India [F.No. 332/3/2008-TRU] Note :- The principal notification No. 1/2006-Service Tax, dated the 1 st March,2006, was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 115(E), dated the 1 st March,2006 and was last amended by notification No. 38/2007-Service Tax, dated the 23 rd August,2007, G.S.R. 565 (E), dated the 23 rd August,2007.