Bangalore: The Centre is open to offer rebate on the service tax imposed on goods booking agents in the budget proposals, Central Board of Excise and Customs (CBEC) Member Budget, S K Bhardwaj said today (August 2, 2004).

"We will give rebate. But to what extent it is rebatable has to be finalised," Bhardwaj told reporters in Bangalore after an interactive meet with the industry, organised by the Greater Mysore Chambers of Industry (GMCI). Though the service tax was not applicable on truck owners, he said, the industry associations wanted more clarity on bringing the booking agents under the tax net and on whether the tax is levied on the total freight value.

"We don't want to raise taxes that affects the economy," Bhardwaj said, adding, the rebate could be announced before the Parliament and the President's assent clear the finance bill.

Earlier, Bhardwaj asked industry representatives to spell out practical problems it could face due to this tax, besides, the users perspective of the transport industry.

With the Value Added Tax (VAT) regime to come into effect from April one 2005 across the country, he said, the Centre plans to bring a "goods and services tax act", a consolidated tax regime for both the manufacturing and services sector.

Bhardwaj said a draft bill is under circulation among States for their recommendations.