NOTIFICATION
NO 32/2004-Service
Tax, Dated : December 3, 2004
In
exercise of the powers conferred by sub-section (1) of section 93 of the Finance
Act, 1994 (32 of 1994), the Central Government, being satisfied that it is
necessary in the public interest so to do, hereby exempts the taxable service
provided by a goods transport agency to a customer, in relation to transport
of goods by road in a goods carriage, from so much of the service tax leviable
thereon under section 66 of the said Act, as is in excess of the service tax
calculated on a value which is equivalent to twenty-five per cent. of the
gross amount charged from the customer by such goods transport agency for
providing the said taxable service:
Provided that this exemption shall not apply in such cases where –
(i) the credit of duty paid on inputs or capital goods used for providing
such taxable service has been taken under the provisions of the Cenvat Credit
Rules, 2004; or
(ii) the goods transport agency has availed the benefit under the notification
of the Government of India in the Ministry of Finance (Department of Revenue)
No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503 (E), dated
the 20th June, 2003].
2. This notification shall come into force on the first day of January,
2005.
[F. No. 341/18/2004-TRU (Pt.)]
(V. Sivasubramanian)
Deputy Secretary to the Government of India