Goods Transport by Road - Exemption

This query is : Resolved

CA Tejas Andharia (Querist)
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04 October 2007 Whether the service receiver can avail the benefit of exemption notification no. 34/2004 effective from 01/01/2005 ?

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)
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04 October 2007 Dear Sir/Madam

As a service provider when one has to avoid service tax on consignments with freight upto Rs 1500 and individual consignment upto Rs 750, naturally as a service receiver you need not pay service tax thereon.

It is not the question relevant to service receiver's end at all.

If you doubt about applicability of Notfn 32/2004 (abatement @ 75%) it has been well established that every service receiver has abatement claim perfectly. DGST who denied first vide letter dated 30.03.2005 got back the same immediately on 11.04.2005.

Even C & AG comments were ignored by Central Govt. The GTA service recipient is also entitled for 75% abatement right from 1.1.2005 without any problem.