Exemption for Paper and Paper Board (CE) :
The paper manufactured by Nagaon Paper Mill or Cachar Paper Mill of Hindustan Paper Corporation granted a small exemption. The exemption is the rate in the first schedule minus 50% of the duties of excise. See Notification No. , dated 31-12-2004.
Government notifies services where the tax is to be paid by other than persons providing service. The GTA confusions continues.
Confusion created by imposition of service tax on GTA to be collected from the recipients of the service is too well known to repeat but a quick recap is worthwhile. When the government first tried to collect service tax from the recipients of services instead of service providers, the Supreme Court struck down the rule holding that there was no provision in the Act to collect tax from the recipients. The government quickly changed the Act in 1998. Where Section 68 of the Finance Act 1994 was substituted. The Section 68(2) allowed the government to notify services in respect of which the tax can be collected from persons other than the service provider. And the government had introduced in the Service Tax Rules, Rule 2, a definition for "person liable for paying service tax" and under this definition mostly recipients are liable to pay. But this definition, in the Service Tax Rules, was not full compliance of the requirement under Section 68(2). Which required the services to be first notified and then the persons liable to pay later. It is strange that for last 6 years the services were not notified. It is heartening that as the year came to a close, on 31st December, 2004 the government has come up with the notification notifying the services to which Section 68(2) applies.- See Notification No. , 31-12-2004.