Abatement on GTA

Can Service Tax be charged at full rate (12.36%) on some of the consignments and abatement (3.09% effective rate) be claimed as well on other remaining  consignments by a GTA ? Can ITC  be claimed  proportionately on the Service Tax paid @ 12.36%? 

Replies (8)

service tax is to charged @ 3.09% .there can be no issue of input tax cerdit. refer service tax for clarification.

If you go for composition then you cannot take input service credit.

The payment of ST on 25% is under Notification 1/2006 which sets out that the credits are nopt to be availed on input services for SUCH services.

Therefore we are of the opinion that there is a possibility of claiming the ITC on services used exclusively for services on which 12.36% is paid. Dept may dispute therefore you may intimate department and go ahead.

As per amendment in finance act 2007 ITC can be claim on service tax paid @ 3.09% on GTA?

Credit can abe availed on input service if service tax is paid @ 3.09% to GTA.

 

As per amendment in finance act 2007 ITC can be claim on service tax paid @ 3.09% on GTA?

Credit can abe availed on input service if service tax is paid @ 3.09% to GTA.

 

Now, GTA service is not an output service within the emaning of Cenvat Credit Rules, hence no credit of input/input services can be taken in providing GTA output service. The abatement has been made non conditional, and hence service tax should be paid @ 3.09 % only.

This payment of service tax is available as input tax credit.

please advice me under which notification can a person paying service tax (other than GTA) can claim the cenvat credit of service tax paid on 25% of the total bill,??

 

Notification No. 32/2004 DATED 3RD DECEMBER povides an abatement of 75% to a GTA.

for confirmations, pl go through the below link. 

https://www.servicetax.gov.in/   -  notifications  -  2004   -   32 dated dec 3

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