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SERVICE TAX ABATEMENT ON GTA

NANDURI RAVI SURYA NARAYANA MU (ACCOUNTANT) (194 Points)

15 February 2008

Respected all members

Can you clarify my doubt relates to Service Tax on GTA. If we are in abatement scheme. Can we exempt the transport service of Rs. 750/-. Pls. clarify

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23 Replies

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 15 February 2008

Yes, Service tax is not payable on single consignment upto Rs.1500/ and where there are more than one consignment in a single carrier then Rs. 750/-

N.K.Bharath Kumar (Chartered Accountant) (60 Points)
Replied 16 February 2008

Dear Friend, As per Notification No.35/2004-ST dated 03-12-2004, any consignment whose value is less than Rs.750/-, we can claim exemption on such bills. However, incase of multiple consignments, the value can be upto Rs.1500/- for which there is no need to pay service tax. We can claim the abatement as per Notification No.32/2004-ST dated 03-12-2004 superceded by Notification No.01/2006-St dated 01-03-2006.

(Guest)

At the outset, the manufacturer cannot avail abatment - it is the GTA who avails the abatment. The service Receiver, i.e. manufacturer has to go by the declaration given by GTA in Goods Consignment Note and pay service tax accordingly. In my view, use of Cenvat Credit for discharging service tax obligation on reverse charge basis is now not allowed. This is beacuse Rule 3 (4) (e) of Cenvat Credit Rules 2004 says that Cenvat can be used for payment of service tax on output service. The GTA service for the manufacturer is not "output" service but "input" service and hence, Cenvat on Tele. service, Professional services, etc. cannot be used for paying service tax on GTA services availed.

(Guest)

Dear Sir, We are a Pvt. Ltd. Co. manufacturing LAMC (law Ass Metrological Coke) which is NON EXCISEABLE but for that we have to import coal from outside and on that we have to take services of C&F agent etc. on which we pay Service tax. Now on other hand being a Pvt. Ltd. Co. we have pay service tax on GTA which we are paying on 25% of total fright as we have corporate clients & prices are on Destination. So now my question is that wether we can use that service tax credit (which we paid on C&F Agent bill) as a input credit for payment of ST on GTA or not?? And suppose if we do not claim 75% abedment & chose to pay ST on 100% of frieght then can we claim that input tax credit (Paid on C&F Agent)?? Kindly guide & clear the confussion. Thanking you Sir. Yours Faithfully, Samir P. Tejura

(Guest)

What exactly the Service Tax Abatement whether the assesee who is claiming service tax abatement, is eligible to claim or take CENVAT CREDIT / INPUT SERVICE TAX

OFFICESELVA (Service) (515 Points)
Replied 26 June 2008

From 01/03/2008 onwards, 75% abatement is available to everyone because taxable value is only 25% of freight charged. More importantly NO CENVAT CAN BE TAKEN AS IT IS NOT A INPUT SERVICE (Definiton of input service changed during the recent Budget for this purpose).

(Guest)

For June08 we need to pay GTA or not

OFFICESELVA (Service) (515 Points)
Replied 05 July 2008

Service tax on GTA must be paid. On 25% of value.

(Guest)

Abatement of Service Tax on Erection, Commissioning & Installation

(Guest)

1) Is abedment on GTA is started from What date?

2) In Sep' 2003, abadment on GTA is there?

(Guest)

Dears, I am doing business in 2 places, turn over each 6 lakhs per annum, in one place i am availing an excemption, so the taxable turn over is only 6 lacks. In this case can i avail the 8 lakhs limit? So that i need not pay service tax as i am with thin the taxable limit.

(Guest)

Is GTA service tax liable for the owner who is running his own transport.

Rakesh Mishra (Accountant) (26 Points)
Replied 06 October 2008

Respected Members,

I am accountant in a manufacturing company. I want to know that service taxcharged by contractor of foundry works can be adjust with Excise Duty? Further I want to know that service tax charged by inssurance company on Worksmen Compensation Policy can be adjusted with Excise Duty?