Transport of goods by road service receiver negative list

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2012 A manufacturing Private Limited Company registered under Central Excise for the manufacturing product and registered under Service Tax for recipient of service "Transport of goods by Road" The Company deposited the Service Tax for Transport Service at the abatement rate 25% on Service Charge since 2005. negative list applied for this type of service? and clarify what is neccessary steps made my account

CA Sahil Singla..

CA Sahil Singla.. (Expert)
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23 December 2012 There is no effect of negative list on GTA service.

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2012 hi sahil thank u what is my Doubt, we follow abatement rate (25% on gross value x 12.36%) or we pay full tax (100% on gross value x 12.36%)?
and one more doubt we received manpower from manpower consultancy with service tax. Who is liable service tax provider or receiver?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Here’s a clear explanation for your queries about **Transport of Goods by Road (GTA service)** and **service tax on manpower consultancy**:

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### 1. **Transport of Goods by Road Service (GTA Service) & Negative List**

* GTA service is **not covered under the Negative List** of services.
* Hence, GTA service **continues to be taxable under service tax**.

### 2. **Abatement for GTA service**

* GTA service qualifies for a **75% abatement** on the gross freight charges (value of service), meaning **only 25% of the gross freight amount is taxable**.
* On this **taxable 25% value**, service tax is charged at the applicable rate (which was 12.36% including cess during your period).

**Formula:**
Service Tax Payable = 25% of Gross Freight x 12.36%

* You **do not pay service tax on 100% of the gross value**; only on 25% due to abatement.

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### 3. **Manpower Supply / Manpower Consultancy Service**

* Service tax on manpower supply is typically **payable by the service provider** (i.e., the manpower consultancy).
* However, if the service is covered under Reverse Charge Mechanism (RCM), then the **recipient may be liable** to pay service tax.
* For manpower supply services, usually the **provider is liable**, unless specified otherwise by law.

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### Summary for your accountant:

* For GTA service, continue to pay service tax on 25% of the gross freight value using the abatement formula.
* No impact of negative list on GTA service; service tax continues.
* For manpower supply, verify if the service falls under RCM or normal charge. Usually, the manpower consultancy provider pays service tax.

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If you want, I can help you draft journal entries or prepare calculations based on this. Let me know!

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