Service tax

I want to know that in a goods transport agency (cloth) what is the rate of service tax.
Replies (1)

In this case service recipient is liable to pay service tax as per Reverse charge mechanism notification. However, as per notification no.26/2012 dated 20/06/2012 an abatement has been provided for Services of goods transport agency in relation to transportation of goods according to which only 25% of value of taxable service is taxable subject to condition that CENVAT credit on inputs, capital goods and input services used in providing taxable service has not been availed. Currently rate of service tax is 15%(including KKC), so effective rate of tax in your case will be 25% of 15 percent i.e. 3.75%

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