Gta - exemption rs. 1500

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Shivani

Learner

1167 Points Posted on 12 September 2014

Exemption Notification No. 25/2012

21. Services provided by a goods transport agency, by way of transport in a goods carriage of,-

.........
goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1500;
goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees Rs. 750

Dear Friends

I understand the 2nd point above but got confused a bit reading 3rd point.

What was the need for Rs. 750 when upto Rs. 1500 is exempt under 1st point.

What is the difference between point 1 and point 2?

Please explain with examples.

thanks

regards

shivani

Replies (6)

Deepak Tapse

Accounts Manager - Taxation

1316 Points Posted on 13 September 2014

Goods transport freight for single consignee up to Rs.750 and for single vehicle up to Rs.1500 is exempt.

Shivani

Learner

1167 Points Posted on 13 September 2014

Dear Deepak

X Ltd. hires the services of ABC (GTA) for transporting goods to Y Ltd. GTA charges freight Rs. 50000 to X Ltd..

X Ltd. is making a local sale to Y Ltd. in Punjab. VAT rate 5%. Value of goods Rs. 100000.

X Ltd. charges freight to Y Ltd. separately in the invoice.

What will be the entries in the books of X Ltd., Y Ltd. and GTA?

Regards

Deepak Tapse

Accounts Manager - Taxation

1316 Points Posted on 13 September 2014

Sales

Y A/c Dr

Sales Cr

VAT Cr

Transport

Y A/c Dr

Transport Ch Cr.

GTA

Transport Ch Dr

GTA Cr

In Books of Y Reverse the above Purchase A/c instead of Sales

Shivani

Learner

1167 Points Posted on 13 September 2014

Where's the effect of service tax (abatement, reverse charge, cenvat) and tds in your entries??

Manoj Agarwal

Service Tax Consultant Rourkela Service

2755 Points Posted on 13 September 2014

Dear Shivani,

If the GTA a carrying goods for a single consignee, than the exemption limit is 1500 per vehicle.

If the GTA is carrying goods for more than one consignee, then the exemption can be claimed by each consignee whose freight is upto Rs. 750 per consignment.

In your example, X Ltd. who pays freight of Rs. 50,000 to GTA has to pay Rs. 1545 as service tax under reverse charge calcualted @ 3.09% of 50,000/-.

Regards