can anyone enlighten me on issue of gta after rcm
as per notification no 30 dt 20th june 2012 service reciever has to pay st on 100 %
whereas as per notification no26 dt.20th june 2012 abatment of 75 % is avilable for service receiver
can anyone explain with example what is current position of st on gta with respect to rcm ?
Both notification applicable in case of GTA Service as per notification No. 30/2012 & 3/2013 service receiver have to pay 100% service tax on GTA and they can also avail the abatement 75% as notification 26/2012 effectively they have to pay service tax on 25% part
Agreed with ankur,
Both notifications are applicable, the service receiver has to pay 25% on 12.36% of the freight amount(ie 12.36*25%=3.09%)
Go Ahead.......
thnks.
one more query
1 ) so service receiver can claim cenvat credit for service tax paid (i.e.of 25 %) ?
2 ) How S.R. will be sure that GTA has not avialed cenvat credit for taking 75 % abatment ?
Under RCM, service receiver has to pay service tax on GTA at 25% value. i.e. 3.09%
Credit will be available if GTA service obtained for input service (purchase of material). if GTA service obtained output service then credit will not be available.
The person liable to pay freight to GTA is liable to pay tax at the effective rate of 3.09% after availing abatement of 75%. If the GTA service is eligible as 'input service' then Cenvat Credit can be claimed and utilized against excise duty or output service tax.
W.e.f. 11-07-2014, the service recipient of GTA service is not required to proof that the service provider (GTA) has availed cenvat credit or not as a condition for taking abatement of 75%. Prior to that, service receiver can take declaration to such effect from the GTA. Normally, it should had been printed/stamed on the consignment note itself.
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