Home Government Constitutes a Committee to Evolve Appropriate Mechanism/Modalities for Service Tax on Goods Transport Agencies   Arising out of an understanding reached between the Transport Industry and the Department of Revenue, the Ministry of Finance, Department of Revenue, had formed a Committee for the purposes of looking into the appropriate mechanism/modalities for collection and payment of service tax on Goods Transport Agencies, which was imposed in the recent budget and led to the nationwide strike by the transporters ad truckers. The 13-member committee, headed by S K Bhardwaj, member, Central Board of Excise & Customs, will comprise the representatives of Central Excise Department, AIMTC, AICGVOA, and Indian Foundation of Transport Training & Research (IFTRT) – an independent organisation carrying out research on transport industry. While the strike evoked a partial response and rather, alienated the common people from sympathising with the cause of transporters for their frequent resorting to strike, the understanding on evolving mechanism/modalities for collection and payment of service tax by Goods Transport Agencies provided a way out for AIMTC representing transporters and truckers to call off their 6-day old strike on 27th Sep’ 04.   The terms of Reference of the Committee shall be as follows -    ▪  To suggest modalities for collection and payment of service tax on goods transport agencies with a view to ensure that truck owners or truck operators are not required to collect or pay any service tax. ▪ To suggest appropriate format of “consignment note” for the purpose of service tax. ▪ To identify “commercial concerns” which will be liable to collect and pay service tax. ▪ To suggest draft rules and notification to give effect to the modalities for collection and payment of service tax. ▪ To suggest suitable methods (by way of abatement, credit, etc.) for arriving at the taxable value of the service. ▪ To suggest any other measure for smooth and effective implementation of service tax on goods transport agencies.   The Committee will submit its report/recommendations by 26th October 2004 to the Secretary – Revenue, Ministry of Finance.