GTA Service provider

[Biplab Malakar]

26/2012-ST dated 20.06.12 allows abatement in excess of 25% of gross amount charged by the GTA service provider (sl.no.7) subject to fulfillment of condition at col. 4. In absence of any proof / information/ declaration/ undertakings given by the GTA service provider in respect of fulfillment of the condition, whether the abatement of 75% is allowable or not.

 

[SHIVKUMAR SHARMA]

Mr.Malakar

In absence of declaration,Yor are not allowable abatement.

Regards

SHIVKUMAR SHARMA

[SR AGRAWAL]

Service Tax is payable on 25% of the freight without any declaration or any evidence from 2008 on wards.

As on now GTA service has been excluded from Output Service, as such neither any declaration nor any evidence of non availment of CENVAT is required.

Regards,

S R AGRAWAL.

[Manoj Agarwal]

1. The abatement has been reduced to 70% from 75% w.e.f. 01-04-2015.

2. The service recipient is not required to fulfill the condition given under N/N-26/2012 for claiming abatement.

[YAGAY andSUN]

Dear Biblab Malakar,

Service provider has to comply with the condition, otherwise no abatement would be available to service recipient.

Please check the amended notification by Budget 2015-2016 in this regard.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

GTA service abatement requires compliance with prescribed condition for eligibility; advisory views conflict on declaration burden. GTA abatement under Notification 26/2012-ST is conditional on compliance with a declaration or proof regarding non availment of input credit; advisory opinions conflict-some advise that no declaration by the service provider bars abatement, others suggest historical treatment of taxable freight and later changes affecting documentary requirements, and Budget 2015 reduced the abatement rate while raising uncertainty about whether the service recipient must fulfil the provider's condition.