Circular No.186/5/2015-ST

[Asked by Guest]

Dear Sir,

I am working in a Transportation company, till September I didnt charge service on transportation charges as service receiver will pay service tax on 30% and 70% abetment under reverse charge mechanism , Now with the mentioned circular Circular No.186/5/2015-ST do I need to charge service tax on Transportation 14% or what is exactly the circular wanted to say. and what would be the effective date if its from 5th october then what about the Invoices which are already raised in between.

Thanks sir.

AI Summary

GTA service tax treatment: ancillary services in a single GTA invoice attract abatement; tax on reduced taxable value.
When ancillary services are charged in the same invoice by a goods transport agency, those services are to be treated as part of GTA service and qualify for the abatement; tax is thus payable on the invoice value after abatement, subject to non availability of CENVAT credit. The circular is prospective and does not change who is liable under the reverse charge mechanism; supplementary invoices may be raised to collect tax where appropriate.