PLEASE CONFIRM WHETHER GTA ABETMENT WHETHER APPLICABLE TO CARGO AND COURIER SERVICE

[nandankumar roy]

WE HAVE RECEIVED DTA TRANSPORTATION BILL FROM BLUE DART WHERE THEY HAVE CHARGED FULL SERVICE TAX WHICH IS ALLOWABLE ON CREDIT SIDE BUT AS WE ARE MANUFACTURING DRUGS AND HUGE CENVAT CREDIT ALREADY WITH US AND FOR THAT AS A RECEIPTANT SERVICE , WE ARE PAYING SERVICE TAX AT OUR END ONLY AVAILED OF ABETMENT (70%OF BILL LESS) TO OTHERS DTA TRANSPORT BILL BUT IN BLUE DART CASE THEY SAYING YOU CAN NOT DO AS OTHER TRANSPORT AS WE ARE REGISTERED WITH CARGO OR COURIER A/C INSTEAD OF DTA. PL CONFIRM WHETHER IT IS CORRECT OR NOT . REGARDS NANDAN ROY

[KASTURI SETHI]

Sh Roy Ji,

Cargo Handling Services and Courier Services have no link with GTA Services.Both these services are entirely different from GTA. No abatement is available to both these services under Notification No.26/12-ST dated 20.6.12 as amended.

[CSSANJAY MALHOTRA]

Agree with Sh. Kasturi ji..

[Ganeshan Kalyani]

Sir, I too agree with the views submitted by Sri Kasturi Sir. His one reply covers all the aspects. The querist query is resolved instantly. Thanks.

AI Summary

GTA abatement not available for cargo or courier services, so standard service tax treatment applies without transport abatement. Cargo handling services and courier services are distinct from GTA services; abatement under Notification No.26/12-ST does not apply to cargo or courier operations, so suppliers classified as cargo or courier may charge full service tax on invoices and recipients cannot claim GTA abatement against those bills.