Can service tax input setoff with output tax of abatement

• Service Tax liability arise when consignment note is issued and a GTA will be liable to pay Tax only when both Service Provider and Service Receiver are individuals.
• The rate of Tax is @ 25% (i.e., abated value as seen from the above table), if the GTA avails Cenvat Credit to set them off with its output liability;
• If the GTA avails any Cenvat Credit, the rate of Tax would be @ 100% value.

(f)  Services provided by Government or local authority

• Reverse charge applies to all Services except certain specified Services;
• The Government Department needs to be registered and pay Service Tax on support Services of –

ü  Renting of immovable properties and

ü  Speed post, express parcel, life insurance.