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

Service tax on transport: portion of freight is taxable; payer who pays the tax may claim input credit.
Works contract abatement reduces the taxable portion of the contract but does not limit input tax credit to that abated percentage; transport services attract service tax on a portion of freight charged by the transporter. If the supplier invoices freight and pays service tax, the supplier is liable and the recipient may claim credit; if the purchaser/consignee pays freight or must deposit tax because supplier registration is not shown, the purchaser may pay the service tax and claim full credit based on the challan and a consignment note in purchaser's name.