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Service tax on carriage inward
If such inward service has been provided by GTA, then it is covered by Full Reverse charge mechanism.
Futher service receiver would be liable to pay 30% of ST (pursuant to abatement under notification no 26/2012)
First of all, determine PERSON LIABLE TO PAY SERVICE TAX
It is - 1. Person on whose name invoice is made
& 2. If Reverse charge is attracted, service receiver.
Secondly, determine location of Person liable to pay service tax. If it is in TAXABLE TERRITORY, service tax is applicable.
Thirdly, If entire vehicle is booked anf freight is upto Rs. 1500/- or one vehicle is carrying goods of more than one consignor, if freight payable is upto Rs. 750/-, NO SERVICE TAX IS PAYABLE.
Lastly, if service tax is payable, NN 26/2012 provides for 70% abatement(earlier it was 75%) - means 30% value is to be taxed @ 14%.
FA 2014 do away the requirement of obtaining certficate from service provider that he is not availing CENVAT Credit of Input Services.
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