Imposition of service tax on services rendered by Goods Transport Operators - Service Tax - Trade Notice No. 298/9/98 - Nagpur

Attention is invited to this Commissionerates Trade Notice No. 273/70/1997, dated 12-11-1997 imposing Service Tax on services provided by Goods Transport Operators. Government has taken the following decisions :- (1) In respect of the category of persons liable to pay the Service Tax under Notification No. 43/97-ST namely factories registered under or governed by the Factories Act, 1948, the liability to pay Service Tax by such factories which are registered as small scale industries with the State Govt. or Development Commissioner SSI be kept in abeyance. However Service Tax will be required to be paid by factories other than those registered as small scale industries. (2) In respect of the IInd category of persons namely any company established by or under the Companies Act, 1956, the liability to pay Service Tax by such companies which are solely and exclusively trading companies and are also registered as Private Ltd. Companies shall be kept in abeyance. However Service Tax will be required to be paid by other than such Private Ltd. Trading Companies. In respect of category (III) (IV) (V) and (VII) i.e. (III) Any corporation established by or under any law; (IV) Any society registered under the Societies Registration Act, 1860 or under any law corresponding to that act in force in any part of India; (V) Any co-operative society established by or under any law; (VI) Any body corporate established by or under any law; the assessees shall be required to be registered and pay the Service Tax. In respect of category (VI) namely registered dealers of excisable goods, since they are already registered under Central Excise Law, it is under consideration by Govt. whether they need to be registered again. However, they are required to collect and pay Service Tax and file returns as required under Law. The Service Tax in respect of Traders Cat. (VIII) shall continue to be in abeyance.