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 ?

[YAGAY andSUN]

You would have to take the declaration from the Transporter that while providing such services, they have not availed the CENVAT credit on Capital goods, Inputs or on Input Services, if you intent to avail the abatement.

[CASeetharaman KC]

Yes , please refer to Abatement Notification no 26/2012 dated 20-06-2012

AI Summary

Abatement for goods transport agency services requires transporter declaration of no CENVAT credit to claim reduced taxable value. Service tax on Goods Transport Agency services remains subject to an abatement that reduces the taxable portion of gross freight receipts, conditional on receiving a written declaration from the transporter that it has not availed CENVAT credit on capital goods, inputs or input services; taxpayers must obtain and retain this declaration and apply the notified abatement when computing taxable value.