MANU/DSTX/0049/2004
Ministry: Ministry of Finance
Department/Board:Central Board of Indirect Taxes and Customs
Instructions from File No.:
341/18/2004-TRU(Pt.)
Date: 17.12.2004
Notification/ Circulars Referred:35/2004 MANU/DSTX/0048/2004;32/2004 MANU/DSTX/0046/2004;12/2003 MANU/DSTX/0014/2003;33/2004 MANU/DSTX/0045/2004;34/2004 MANU/DSTX/0047/2004
Referred IN
Subject: Goods and Services Tax
Subject: Excise
To,
The Chief Commissioners of Central Excise and Service Tax,
The Director Generals,
The Commissioners of Central Excise and Service Tax,
The Commissioners of Service Tax,
Madams/Sirs,
Issues Pertaining to Levy of Service Tax on Goods Transport
Agency
In the Budget 2004, it was proposed to levy service tax on services provided
by a goods transport agency in relation to transport of goods by road.
2. For this purpose vide Finance (No.2) Act, 2004, a sub-clause (zzp) was
inserted in clause 105 of section 65 of the Finance Act, 1994, defining taxable
service as any service provided to a customer, by a goods transport agency, in
relation to transport of goods by road in a goods carriage.
2.1 The definitions of goods carriage and goods transport agency
were also provided by inserting clause 50a and 50b in the Finance Act, 1994 as
follows:
(50a) goods carriage has the meaning assigned to it in clause (14) of
section 2 of the Motor Vehicles Act, 1988; and
(50b) goods transport agency means any commercial concern which
provides service in relation to transport of goods by road and issues
consignment note, by whatever name called.
3. In pursuance to an agreement dated 27th August, 2004 between the
Government and representatives of the transport industry, a Committee was set up
to look into appropriate mechanism/modalities for collection and payment of
service tax. It was instructed vide letter issued from F. No. B2/8/2004-TRU
dated 10.9.2004 that no tax would be payable by the goods transport agency till
such time the Government comes out with the relevant rules/ notifications
prescribing the modalities for levy and collection (refer pa........