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Issue ID: 110513
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GTA service tax

Date 14 Jun 2016
Replies 1 Reply
Views 1138 Views
Asked by
Abatement and exempt goods sequencing affects small service exemption eligibility for goods transport agency turnover.
Whether a Goods Transport Agency's taxable turnover should be computed by first applying the abatement and then deducting receipts for fully exempt goods, and whether a net turnover falling below the small service exemption threshold after those deductions permits claiming the exemption; the query arises from a non owner GTA and seeks the correct sequencing for calculating taxable value and consequent exemption eligibility, with no substantive answer provided in the text beyond a referral. (AI Summary)

1.While calculating the total turnover for Service tax of GTA , Can I deduct the abatement(70%) from the total turnover first and then deduct the fully exempted items % from the rest amount (pules rice, salt, milk ,chemicals,etc...) .Is this calculation is correct ? If it is wrong please suggest the correct method of calculation.

2. I am running GTA ( not owner of any vehicle . only hiring) .From the total bill amount of GTA in a year , if i deduct first the abated amount and then deduct the fully exempted items amount , after that if the turnover amount comes below 10 lakhs ,can i avail small scale exemption of service tax ?

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Replied on Jun 14, 2016
1.

Refer issue id 110510.

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