Service tax on freight ??

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Sir

I have a Non SSI Partnership Firm engaged in Manufacturing of Iron & Steel. During the year 2010-2011, I availed service of Good transport Agency as input service. The freight of all the Consignment Notes was less that Rs 750. Total amount of Freight paid was Rs. 50000 during the year to one Goods Transport Agency.

During Central Excise audit, The Superintendent of CE asked me to paid Service tax on Rs. 12500 i.e. 25% of 50000. He said that exemption of Rs. 750 has been withdrawn for assesses falling under reverse charge concept. Is he correct ? is there been any changes ? Plz tell me the relevent notification he is relying upon. ?

Replies (4)
I hope your query has been resolved.

 

 

Notification No.34/2004 - Service Tax

       In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to a customer, in relation to transport of goods by road in a goods carriage, from the whole of service tax leviable thereon under section 66 of the said Act, where,-

(i)

 the gross amount charged on consignments transported in a goods carriage does not exceed rupees one thousand five hundred; or

(ii) 

the gross amount charged on an individual consignment transported in a goods carriage does not exceed rupees seven hundred fifty

 

Explanation .- For the purposes of this notification, “an individual consignment” means all goods transported by a goods transport agency by road in a goods carriage for a consignee.  

2.             This notification shall come into force on the first day of January, 2005.

Dear Ajit ji,

when service receiver pays ST for GTA the above exemption notification is withdrawn sir? pl.confirm ?

I dont think there has been any change in such exemption. The exemption relating to 750 and 1500 still exists under Notification No. 12/2012. 

We should wait for others to clarify.

Notification No.34/2004 - Service Tax has rescinded. Please make this clear that most of the exemption and abatement notifications have been withdrawn, instead of new notification have been issued by the Department which is effective from 01-07-2012. Coming to the query, as per the notification no. 25/2012 dtd 20-06-2012 the earlier exemptions are still sustained. Hence,exemption of Rs 750/- for individual consignement and Rs 1500/- for entire consignment is still applicable.


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