Service tax on transport by road

rates 1536 views 3 replies

Hi,

We take help of transport services provided by various transporters for taking our goods from our premises to our customers.

Some transporters charge service tax and some dont.

Until recently, the service tax was calculated on 25% of transport charges. But now we find that the service tax is charged on full amount.

We need to know if there has been a change in the rates for service tax or the abatement clause has been withdrawn.

Please advise so that we can accordingly record transactions at our end.

 

Thanks and regards,

Prashant

Replies (3)

As per my knowledge there is no change in either service tax OR abatement clause for transport.

But please wait for others reply.

KIYOSH

ABATEMENT CLAUSE IS NOT WITHDRAWN.YOU ARE REQUIRED CALCULATE AS PER YOUR FORMULAE

The bill where the service tax on GTA is charged full rate is not direct from transporter, but of any agent, as he used to take input credit of service tax paid on transport, so he can claim abatement. 


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