Transport of goods by road — Scope of abatement of 75% - Service Tax - V/DGST/43-GTO/02/2005/19879

Transport of goods by road Scope of abatement of 75% Director General Service Tax, Letter F. No. V/DGST/43-GTO/02/2005/19879, dated 30-3-2005 Service Tax Circulars Trade Notices Subject: Applicability of Notification No. 32 dated 3-12-2004 Regarding. It is observed that there is wide spread confusion over the applicability of benefit provided under Notification No. 32/2004, dated 3-12-2004 vis-a-vis Notification No. 35/2004, dated 3-12-2004. The matter has been examined in this Directorate and it is clarified that the benefit of Notification No. 32/2004, dated 3-12-2004 granting an abatement of 75 I from the gross amount charged by goods transport agency for providing the said taxable service, is available only in cases where Goods Transport Agency is liable to pay service tax. This benefit is not available in cases where the provisions of Notification No. 35/2004, dated 3-12-2004 are applicable. (i.e. where the consignee or consignor are from one of the seven categories mentioned therein). You may suitably inform the jurisdictional Commissioners.