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16 February 1998

Transporters plan stir over anomalies in service tax 

Huma Siddiqui  
New Delhi, Feb 15: The transporters are planning a massive agitation later this month over the anomalies that are occurring over the five per cent service tax. What has triggered the transporters to threaten agitation was the imposition of the service tax extended to services rendered by the goods transport operators.

The government on November 5, 1997, had decided to bring into effect the service tax in relation to transport of goods by road from November 16, 1997. The tax will be payable in respect to the service rendered for transport of goods by road to the following categories:

  • any factory established by or governed under the Factories Act 1948;
  • any company established by or under any law;
  • any corporation established by or under the Companies act 1956;
  • any society registered under the Societies Registration Act, 1860 or under any other law;
  • any co-operative society established by or under any law;
  • any dealer of excisable goods who is registered under theCentral Excise act, 1944 or the rules made thereunder;
  • any other body corporate established by or under any other law; and
  • any person assessed to Sales Tax whose turnover exceeded Rs 50 lakh during the previous year.

    It has been provided in the service tax rules that the responsibility for payment of service tax shall be with the above categories of persons.

    Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



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