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Advlorem tax rate

renu dutt (c a) (231 Points)

23 April 2015

Dear all,

I want to know what is the advlorem tax rate for the receiver of the service "Transport of goods by road/goods transport agency service. We are a pvt. ltd. co. and pay service tax @ 3.09% on the amount paid to the transporter.In the previous service tax return we get the msg that advolrem tax rate is not correct.can any body guide in this regard.

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4 Replies

ANIL DHANUKA (Self Employed) (54 Points)
Replied 24 April 2015

W.e.f 01.04.2012 adveloram rate is 12% + 2% + 1% i.e. 12.36%. Services of goods transport agency in relation to transport of goods gets an abatement of 75% and only 25% is taxable i.e. 3.09%. Applicable notification no. Should be used in abatement coloum yo avail the abatement

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CA AJAY KUMAR AGRAWAL (PRACTICE) (813 Points)
Replied 24 April 2015

wef 01-04-2015 rate of abatement is only 70% i.e. effective tax rate will be 3.708%

ANIL DHANUKA (Self Employed) (54 Points)
Replied 24 April 2015

True, Service Tax Rate Abatement Chart as Applicable from 01.04.2015 updated with Changes Made Vide Budget 2015 and Notification No. 8/2015-ST, Dated: March 01, 2015.

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 24 April 2015

Dear Renu,

If you are filing ST-3 Return for the Half Year ended 31-03-2015, you should show total freight paid at column B2.7 (service receiver) and select N/N-26/2012 Sr. No. 7 and claim 75% of total freigh as abatement. At Advolerem Rate, enter 12, 2 and 1 respectively.

For paying tax for the period 01-04-2015 onwards, you claim abatement of 70% i.e. effective tax rate of 3.708% of total freight.