Mega exemption items of june 2012

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shalu (Querist)

04 March 2014 In mega exemption items of june 2012 there are two exemption limits given related to service of transporters one is Rs 750 & other is Rs.1500 what is the difference between them. How both limits can be differentiated.

Ganeshbabu K

Ganeshbabu K (Expert)

05 March 2014 Mega Exemption Notification No. 25/2012-ST has exempted low value consignments from the levy of service tax, as follows:

(a) Where the gross amount charged for the transportation of goods on a consignment transported in a single goods carriage is upto Rs 1,500/-; or

(b) Where the gross amount charged for transportation of all such goods for a single consignee in the goods carriage is upto Rs. 750/-

Ganeshbabu K

Ganeshbabu K (Expert)

05 March 2014 Find below Illustrations may helpful

ILLUSTRATION:
A company receives goods from a GTA in a truck. No other goods are loaded in that truck. The company pays freight of Rs. 1500/- to GTA. No service tax is payable by any person on this consignment as it is exempted.

ILLUSTRATION:

A company receives goods from a GTA in a truck. Some other goods not belonging to the company are also loaded in the truck. The company pays freight of Rs. 900/- to GTA. The freight of other goods is Rs. 500/-. Service Tax is not payable by the company on this consignment as the total freight for the truck is Rs. 1400 (<1501) so it is exempted.

Ganeshbabu K

Ganeshbabu K (Expert)

05 March 2014 ILLUSTRATION:

In the above illustration, if the freight of other goods is Rs. 700/-, then the total freight for the truck is Rs. 1600 (>1500). Freight paid by company is Rs. 900 (>750). So, exemption is not available and the company should pay service tax on Rs. 900/-!!

For more doubts refer article by ManojAgarwal

https://www.caclubindia.com/articles/service-tax-on-gta-a-guide-19063.asp#.Uxb9xfQW11Z

Message likes : 1 times

shalu

shalu (Querist)

06 March 2014 thank u very much.There is no more doubt in my mind regarding this. Thanks a lot

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