Service tax on transport(payable) & Service tax input

[Rudrayani Shedjale]

Hello

We are into Work Contract Service.

i want to confirm some rates.

1. into work contact service we avail, 60% abatement & taxable portion is 40%.so previously the rate of service tax for works contract was 4.94% which is now changed to 6% (40% of 15 i.e. prevailing service tax rate)

2. i want to know what is the taxable portion of transport service that we receive? 25% or 30% ?? if a supplier charges freight charges in his invoice (material purchase) are we liable to pay service tax on the same?

3. While taking service tax credit, we are eligible to take entire portion of service tax or is there any limit to 40%

please help.

thank you.

AI Summary

Clarifying Service Tax: 30% Tax on GTA Services, 60% Abatement for Work Contracts, Credit Eligibility Explained. A discussion on service tax related to transport and work contract services involves clarifying tax liabilities and credit eligibility. A user inquires about the taxable portion of transport services and the applicability of service tax when freight charges are included in invoices. Responses clarify that for Goods Transport Agency (GTA) services, tax is payable on 30% of the gross value, and credit can be claimed if the freight is paid by the consignee. For work contract services, a 60% abatement is applicable, and full tax credit is available. Additional queries address scenarios involving invoices without service tax registration numbers.