Goods Transport- good clarification
Service Tax paid on goods transport is allowed as credit only if the transporter has not taken credit or availed exemption under Notification No. 12/2003. Now how in the world is a manufacturer who hires a lorry supposed to know whether the transporter has taken credit or not? This has been the question agitating all concerned for the last seven months. Now Board clarifies that a declaration can be obtained on the consignment note to that effect from the transport agency. But mind you these instructions are strictly for departmental use and if you have come to know about them, please don’t reveal this national secret either to the transporter or the manufacturer. But the doubt remains – what is the document for taking credit. If it is the Challan, is it mandatory that Service Tax has to be paid only by Challan? Board is blissfully silent!
Source: TRU’s letter F.No.B1/ 6 /2005-TRU dated 27th July 2005 which the Board is shy to release to the Public. Board should seriously consider declaring the Tariff, the Act, the Rules and the Notifications as top secret documents never to be revealed to troublesome assessees, nosey journalists and anti social (read anti Board) advocates. The best way to run the Board is to suppress information.
Unfortunately CBEC has to function in India where there are still irritating concepts like accountability, democracy, press, courts………….