Service Tax on GTA - DG withdraws clarification
WE are happy to report that the DG Service Tax has withdrawn the controversial clarification we reported yesterday. On behalf of thousands of assessees spread across this large country, we express our deep feelings of gratitude to the DG Service Tax for the courage in withdrawing the clarification which we pointed out was patently illegal. Any one can make a mistake; it takes real strength to correct a mistake. A responsible and responsive tax administration ready to admit a mistake and that too promptly before much damage could be done is the greatest happening. Now the consignors/consignees can continue to pay Service Tax on 25% of the value. Yesterdays storm was only one in the tea cup and it has blown over. Alls well that end well. Your Taxindiaonline promises to humbly continue with its mission to constantly watch and report such aberrations and this kind of prompt corrections boost our morale. Thank you DG!
But officers in the field who knew their DG were not prepared to believe that the DG would withdraw his circular. So in - 02 05 2005, we confirmed that the DG had indeed withdrawn his circular.