TaxTMI 
TaxTMI 
TaxTMI 
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)
TRANSPORT OF GOODS BY ROAD
Guest
Service tax abatement for goods transport available where the payer is liable to tax, per post budget clarification. Entitlement to the abatement for goods transport services depends on liability to pay service tax: the abatement is available only where the goods transport agency is liable to pay service tax and is not available where liability is shifted to consignor or consignee under the alternative notification; a later Ministry of Finance clarification allows consignor or consignee who are required to pay the service tax on the transport services to avail the abatement. (AI Summary)
