Look at a few samples -

By Vijay Kumar

Point raised by a CHA :

Point No 1 Even though the service was brought under the net from 16th July 1997, there remains a lot of confusion for the exemptions and the exact amount on which the service tax is payable. In case of lump sum billing, the actual reimbursement is excluded and the rest of amount is considered for 15% assessable value and the service tax is applied. Confirm whether the above system is correct.

Reply: Refer Sub Section 29 of Section 65 of Chapter V of the Finance Act, 1994

What a reply! The CHA was referring to a Board Circular wherein it has been decided to charge service tax on 15% of the gross amount in case of lump sum billing and he was asked to refer to the definition of the service under Section 65!

Point No 2: As a Customs House Agent, lot of service is availed from various service providers and service tax is paid by them. Clarify whether all such service tax paid can be taken credit on the total service tax liability.

Reply: Refer Clause (L) of Rule 2 of Cenvat Credit rules.

If you are a regular follower of RAC minutes, you will find several such amusing replies to the difficulties expressed by the trade. Assessees do not attend RAC meetings to be told to read sections of the Act. They can do so far better in the cosy comforts of their offices instead of wasting time in attending these meetings. Only time will tell how the proposed help centres by the FM function as real help centres.