New Delhi, Jun 26 (UNI) The government today waived off service tax on transport vehicles hired or rented by a transport company for carring goods by road.
The exemption was notified by the Union Finance Ministry.
Earlier, the government in the current Budget had slapped service tax on supply of vehicles to goods transport agency (gta) for carrying goods if the vehicles were not transferred to the possession and effective control of the agency.
Truckers and their organisations had represented against this tax, contending that service tax paid on renting or hiring of goods carriage, without reight of possession and effective control, could not be taken as input credit for payment of service tax towards gta service.
UNI SAA SBA RAI2005