Goods transport by road

This query is : Resolved

survesh (Querist)
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12 July 2012 Dear Sir,
Our Firm is a partnership firm.We outsource transpot Work to Other they Bill US 75%Abedment & 25%taxable.
We also Bill in same Condition
Please Clearfy the Transport Charges be Bill is 75 Abedment and 25% Taxable @ 12% is it correct or any changes in the rule.The notification is not understable.

Is their change in rule.Can we take Setoff of Servicetax when we purchase the bills.

Thanks & regards

RENGARAJ R.K

RENGARAJ R.K (Expert)
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12 July 2012 From 01.07.2012, the GTA service provider is not liable to remit any Service Tax under reverse charge mechanism and only the service receiver is 100% accountable.

There is no change in the abatement rule after 1st July, and 75% on the bill value (value Rs.750/-) can be availed for remitting the service tax @12.36%.

Regarding cenvat benefit, it is available for manufacturers for outward transport charges.

survesh

survesh (Querist)
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12 July 2012 From 1/7/12 the GTA Service Provider is not Liable to remit any Servicetax Under Reverse Charge Mechanism and only The service receiver is 100% Accountable.

That does these sentence mean it didnt understand.

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