12 November 2012
I have a client who is supposed to pay service tax according to reverse charge mechanism. He is receiving services from a goods transport agency. Accordingly he can claim an abatement of 75% and is supposed to pay service tax on 25%. The problem that I am facing is we need to submit notification no. while uploading service tax return. So I have taken notification no 34/2004-S.T. and accordingly abatement is taken at stipulated place. Return was filed with the government but while checking xml status it is rejecting and showing an error of that no notification is selected. For this reason I am not able to file the service tax return. Kindly guide on how should I proceed in order to file the service tax return. Please reply ASAP.
12 November 2012
Thanks for the reply. But in the service tax form -- in drop down list for the notifications -- 2012 notification does not appear. Kindly note we are filing for the period 01.04.2012 to 30.06.2012. Kindly advice.
17 November 2012
Yes. partial exemption can be refer to as abatement but for the purpose of filing return, proper column has to be filled otherwise the service tax return would be rejected.
However, earlier service tax returns were accepted with the abatement clause, but now it is not.
18 November 2012
Sahil Ji,. Notification No. 13/2008 is correct and relevant and it has to be filled in Row 14 of ST3 (Apr-Jun12).
But while filling the details of Service Tax Payable, the abated(EXEMPTED) figure has to be filled in Row 61 instead of Row 63.
Row 61 of utility talks about the exempted value on which no service tax is payable and Row 63 is about Abatement.
Though the common perception regarding GTA is that 75% abatement is allowed in case of GTA, but in legal parlance 75% of the value is exempted from service tax. Although it will not have any effect on the calculation of tax payable but the relevant row i.e Row 61 has to be filled.
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