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service tax query

abatements 1157 views 2 replies

CA.Amit Mehta

Professional

254 Points Joined September 2009

hey guys i hav one query plz do the needful.person providing services related to handling charges wr he has to pay service tax and he also receives services related to goods transport agency via his agent.in these case he has to pay service tax on GTA because of he is principle and he gets ABATEMENT of 75% on GTA different bill raised for GTA and Handling charges.my query is

IF GOODS TRANSPORTATION BILL IS INCLUDED WITH HANDLING CHARGES WILL HE GET ABATEMENT OF 75% ON GTA WHICH IS COMBINE OF HANDLING CHARGES AND GTA.

IF GTA SEPRETLY SHOWN IN BILL THAN WHAT?

AND IF MERGED THAN WHAT?

PLZ REPLY

Replies (2)

Sorabh Gupta

Manager ( Taxation )

877 Points Joined July 2008

Dear Amit

Practically it is the trick for avoidance of tax.............Look it depends on the nomenclature of contract terms....As if you combined the service i.e. Frieght+Handling and in contract you show the comnbined rate and in bill you show this amount as frieght from one place to another then you can claim the abatement.......................