Transport of goods by road service receiver negative list
Querist : Anonymous
Querist : Anonymous
and one more doubt we received manpower from manpower consultancy with service tax. Who is liable service tax provider or receiver?
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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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