Statues relating to Service Tax during the year 2009
1. Notification No.1/2009 – Service Tax - dated 5-1-09 - exempts some taxable services, provided by any person to a goods transport agency for use by the said goods transport agency
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, IN PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 5th January, 2009
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) (hereinafter referred to as the Finance Act), and in supercession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.29/2008- Service Tax, dated the 29thJune, 2008, published in the Gazette of India Extraordinary, vide G.S.R.482 (E), dated the 29th June, 2008, except as things done or omitted to be done before such supercession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in sub-clauses (j), (k), (zr), (zza), (zzb), (zzzf), (zzzq) and (zzzzj) of clause (105) of section 65 of the Finance Act, provided by any person to a goods transport agency for use by the said goods transport agency to provide any service, referred to in sub-clause (zzp) of clause (105) of section 65 of the Finance Act, to a customer in relation to transport of goods by road, from the whole of the service tax leviable thereon under section 66 of the Finance Act subject to the condition that the invoice issued by such service provider, providing services should mention the name and address of the goods transport agency and also the name and date of the consignment note, by whatever name called, issued in his behalf.
(Unmesh Sharad Wagh )
Under Secretary to the Government of India
[F. No. 137/175/2008-CX-4]
SERVICE TAX EXEMPTION ON CERTAIN GTA SERVICES - Press Release, dated 5-1-2009
Government has fully exempted certain taxable services from service tax, provided to a goods transport agency (GTA) by their sub-contractors. A notification, No.1/2009–Service Tax, to this effect was issued by the Department of Revenue, Ministry of Finance, here today. These services are generally used by the GTA during the course of transport of goods. The specified services are :-
(i) clearing and forwarding agent service;
(ii) manpower recruitment or supply service;
(iii) cargo handling service;
(iv) storage and warehousing service;
(v) business auxiliary service;
(vi) packaging activity service;
(vii) business support service; and
(viii) supply of tangible goods service.
The tax on transportation of goods by road is on the gross amount of freight charges (after allowing abatement of 75%) which includes the expenditure incurred on above services. Since no credit is available to GTA services, separately charging tax on these input services leads to double taxation, which would be mitigated now.
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