Gta

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S. Prakash (Querist)

19 September 2013 Gud Morning to all

I have a query About GTA.

we are calculating service tax on 25% of freight inward which we are paid to transport 100% as per notification 26/2012-S.T SI.No.7.

we are service Receiver. Is this correct or there are any changes in Notification.
please help me out .

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)

19 September 2013 Goods transport freight for single consignee up to Rs.750 and for single vehicle up to Rs.1500 is exempt.
Service tax has to be paid only on 25% of the gross amount paid to the Goods Transport Agency. For gross amount, octroi is not taken in account.
The tax is payable on reverse charge basis by consignor or consignee who ever pays the freight, if the consignor or the consignee is factory, registered society, co-operative society, registered dealer, body corporate, partnership firm, LLP and association of persons.
If the goods transport agency has charged service tax then no service tax is payable by consignor or consignee.
To avail abatement , condition is "CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004."

S. Prakash

S. Prakash (Querist)

19 September 2013 Thank you So much Ravi Kumar Sir

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