TRANSPORT OF GOODS BY ROAD , Service Tax

[AJAY KUMAR AGRAWAL]

Regd: TRANSPORT OF GOODS BY ROAD One of my client is Central Cooperative Society and consignee for purchase of sugar from out side Delhi by Sugal Mill. Can the Cent Coopt Society ( Consignee) claim the abatement of 75 % available vide notification no. 32/2004 dated 03.12.2004 ? However on page no 697 of NABH'S Service Tax Guidlines Text of Director General / Service Tax , Letter F No V/DGST/43 / GTO/ 02/2005 /19879 dt 30.03.2005 It is observed that there is wide spread confusion over the applicability of benefit provided under notification no. 32/2004 dt 03.12.2004 vis a vis Notification no 35/2004 dt 03.12.2004 The matter has been examined in this directorate and it is clarified that the benefit of notification no. 32/2004 dt 03.12.2004 granting an abatement of 75 % from the gross amount xharged by goods transport agency for providing the said taxable services, is available only in cases where Goods Transport Agency is liable to pay service tax. This behalf is not available in cases where the provisions of Notification no 35/2004 dt 03.12.2004 are applicable ( i.e where the consignee or consignor are from one of the seven categories mentioned therein)

Posts / Replies

[S Gupta]

Now, there is no confusion and the consignee or consigor who is liable to pay service tax on the services provided by goods transport operator, are eligible to avail the benifit of exemption of 75%. For this purpose you may refer the post budget 2005 clarifition dated 27.7.2005 of the MOF (paragraph no. 31)