service tax on goods tpt agency

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This query is : Resolved

CA Sanjeev Kr Jain (Querist)

07 March 2008 my firm is engaged in exports of garments. we are registered with service tax for payment of service tax on goods transport agency.

since now govt has exempted this service, please let me know if service tax is payable on GTA

Dayal

Dayal (Expert)

07 March 2008 The service is not exempted.

The abatement of 75% is not unconditional, prior to this it was conditional i.e the transporter had to give declartion on the consignment note that he has not aviled credit as per not no 32/2004 also 1/2006 and not exercising notification no 12/2003 dated 20/06/2003

Service tax is still payable on GTA

But since you are an exporter you can claim the refund of such service tax by following notification no 41/2207 and 42/2007 laying down the procedures

Still if you need further clarification do let me know

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Querist)

08 March 2008 Dear Dayal

thanks for reply

but i wish to ask if view of exemption granted by the govt to the exporter from service tax on GTA is the exporters are liable to pay service tax on services of GTA

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Querist)

08 March 2008 but i wish to ask if view of exemption granted by the govt to the exporter from service tax on GTA is the exporters are liable to pay service tax on services of GTA

Dayal

Dayal (Expert)

10 March 2008 Yes, you need to pay first and then claim refund.

It is pay first and seek refund later on.

Hope this clarifies your inquiry

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