Home Seminar on Service Tax and Interactive Session with Transport Commissioner, Government of Rajasthan at Jaipur   FADA has been rotating its meetings with a view to gauging the mood and scenario of retail automobile trade in various parts of the country. In keeping with this policy, FADA held its Council Meeting, a Seminar on Service Tax, an Interactive Session with Transport Commissioner, Government of Rajasthan and a Press Conference on 19th & 20th March, 2004 at Jaipur. Seminar on Service Tax The 2-day programme started with a Seminar on Service Tax in the afternoon on 19th March, 2004, at which Ms Praveen Mahajan and Mr J Chaturvedi, both Commissioners of Central Excise, Rajasthan along with their team of officials were present to clarify the doubts and queries of the participants. Ms Mahajan, in her opening remarks, dwelt on the history and growing importance of service tax, while, Mr Chaturvedi spoke on the procedural aspects of service tax law. The seminar was very well attended and helped in clearing the mist on most of the issues raised by members. The interaction mainly focused on:    ▪  Provisions & conditions for adjustment or availing credit of service tax paid on input services, including in a situation where a dealer has a composite showroom and workshop, while paying the service tax on output services; ▪ Applicability of service tax levy in various situations, including legality and desirability of service tax on incentive/commission received by the automobile dealers for marketing auto finance. ▪ Penal provisions for non-compliance with service tax law, including non-registration and delay in filing returns and depositing service tax collected.   Commissioners of Central Excise asked FADA to submit the queries/points of FADA members in a consolidated form for study and appropriate clarification from their end. FADA proposes to organize similar seminars in various parts of the country to educate and enlighten the members on implications and intricacies of service tax. In an Interactive Session, Dr Ashok Singhvi, Transport Commissioner, Government of Rajasthan, highlighted the steps taken by the Transport Department in simplifying the procedures for registration of vehicles, viz.,    ▪  Delegation of registration, including, inspection of non-transport vehicles to automobile dealers; ▪ Relaxation in submission of various documents for registration by automobile dealers; ▪ Authorising even employees designated by the dealers to sign registration documents.   Responding to FADA's concern over variation in road tax and multiplier effect of taxes on motor vehicles at various stages, Dr Singhvi desired a note from FADA on rationalization of road tax in Rajasthan. Following the Interactive Session with Transport Commissioner, Rajasthan, a team of ICICI Bank officials made a presentation on the current & emerging scenario and the role of the Bank in financing vehicle sales and dealership operations. In the evening a Press Conference was organized. The Press Meet was addressed by President FADA, Vice President FADA and Mr Vinay Nevatia, Past President, FADA. The issues of concern to automobile trade, namely, high incidence and multiplicity of taxes on motor vehicles, shrinking margins and dealer viability, as also major initiatives taken by FADA of benefit to its members were highlighted at the Press Meet. The next day, the 215th meeting of FADA Council was held. Important decisions taken at the meeting were:    ▪  To make the Auto Summit a regular biennial programme of FADA and to organise Regional Auto Summits in East, South and West regions. ▪ To explore the possibility with banks of a Credit Card-cum-Membership Card for FADA members; ▪ To appoint a Director (Training) in FADA on permanent basis to give impetus to the training programme for FADA, members as a continuous activity in a structured form; and ▪ To engage a consulting firm for conducting systems audit of automobile dealerships.