Service tax on gts

Hi all,

         on for freight payment, the service provider has not collected tax in the invoice, being he also owns a service registration No. Or is there any notifications exists that full value has to be paid by the service receiver. Please state

  

Replies (1)

Hi,

 

As per the notification No: 30/2012, the service receiver has to pay the  entire  Service tax on the service provided by the Goods Transport Agency. However an abatement of 75% can be availed. For example, if the GTA charges 1000 bucks , then the receiver will have to pay service tax of 12.36% on the value of  Rs 250 (i.e.1000 less 75% of 1000). Here the service tax of Rs 31 to be paid by the service receiver.

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