03 March 2008
New Delhi, the 1st March, 2008 Notification No. 13/2008-Service Tax 11 Phalguna, 1929 (Saka)
G.S.R. (E).–In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to any person in relation to transport of goods by road in a goods carriage, referred to in sub-clause (zzp) of clause (105) of section 65 of the Finance Act, from so much of the service tax leviable thereon under section 66 of the Finance Act, as is in excess of the amount of service tax calculated on a value equivalent to twenty five per cent. of the gross amount charged by the goods transport agency for providing the said taxable service.
2. This notification shall come into force on the 1st day of March, 2008.
It means now we have to pay 25% service tax on transport service & we can claim also it as input. Whether I am correct or not. Please answer asap.
03 March 2008
NOW Service tax payable on GTA service shall be only on 25% of the gross amount charged as freight. GTA service providers shall not be allowed to avail input credit. under Cenvat Credit Scheme. Rule 2(p) is being amended so as to exclude goods transport agency service from the scope of “output service”.
03 March 2008
Dear all, Till now, if we pay service tax on 25% value of freight, then no credit is allowed whether it is related to freight inward or outward. My doubt is that now after budget we can claim service tax on 25% value of freight if it is related to inward transportation & in relation to manfacturing acitivites. Thanks for reply.
03 March 2008
Dear all, Till now, if we pay service tax on 25% value of freight, then no credit is allowed whether it is related to freight inward or outward. My doubt is that now after budget we can claim service tax on 25% value of freight if it is related to inward transportation & in relation to manfacturing acitivites. Thanks for reply.
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