SERVICE TAX ON GTA

[SANJEEV JADHAV]

AS PER EARLIER PROCEDURE WE ARE PAYING SERVICE TAX ON GTA BY TAKING 75% ABETMENT ON GTA. I.E WE ARE PAYING SERVICE TAX ON 25% ON GTA VALUE EVEN AFTER 1.7.2012. PLEASE CONFIRM WHETHER WE ARE FOLLOWING CORRECT PROCEDURE. IS THEIR ANY CHANGE IN GTA PROCEDURE AFTER 1.7.2012. IS ABETMENT IS TILL ALLOWED FOR GTA ?

AI Summary

Clarification on paying service tax for GTA services post-July 1, 2012, with 75% abatement per Notification No. 26/2012. A query was raised regarding the correct procedure for paying service tax on Goods Transport Agency (GTA) services, specifically about continuing to pay tax on 25% of the GTA value after applying a 75% abatement post-July 1, 2012. One response advised obtaining a declaration from the transporter confirming they have not availed CENVAT credit to continue availing the abatement. Another response confirmed the procedure's validity by referencing Abatement Notification No. 26/2012 dated June 20, 2012.