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Service tax rate on gta including swachh bharat cess

abatements 555 views 3 replies

Karunakar

ACCOUNTS OFFICER IN TATA PROJECTS LTD.

73 Points Posted on 28 March 2016

PLEASE LET ME KNOW THE RATE OF SERVICE TAX ON GTA IS 4.35% OR RATE IS 4.2% & 0.5% SWACHH BHARAT CESS

I.E. IF GTA GROSS VALUE IS RS.50,000/-,

1. ST RATE IS 50,000*4.35% = 2,175/-

2. ST RATE 50,000*4.2% = 2100 & SWACHH BHARAT CESS 0.5% ON 50,000 = 250

TOTAL RATE OF GTA = 2.350/-

PLEASE CLARIFY WHICH IS CORRECT RATE OF SR. NO.1 OR RATE OF SR. NO. 2

THANKS

Replies (3)

Jagdish

CA CS activities

215 Points Posted on 28 March 2016

2. ST on 50000 * 4.2% = 2100 (14 * 30% = 4.2%)

Swachh Bharat Cess on 50000 * 0.15% = 75 (0.5 * 30% = 0.15%)

Jagdish

CA CS activities

215 Points Posted on 28 March 2016

2100 + 75 = 2175

Vishal Goel

Chartered Accountant

1693 Points Posted on 28 March 2016

Agree with jaddish

Section 119 provides that SBC would be levied and collected as service tax. Further, sub section 5 provides that provision of chapter V of the Finance Act would apply to SBC as they apply to service tax. The abatement notification is issued under section 93 (chapter V) of the Act. So, this notification would apply for SBC also in the same manner as apply for service tax. Hence, the effective rate of tax on all abatement services would be 14.5% * effective rate under Notification 26/2012-ST. For GTA, it would be 14.5%*30%= 4.35% (not 4.70%).