Clarification of abatement under GTA services

[Guest]

We have taken service tax registration for payment of service tax under GTA as an availer of service. Excise authorities have issued showcause notice stating that abatement under notification no. 32/2004. is available only for Goods transport agency and not for the person who avails such service. As per the provisions of Service Tax, for GTA the availer has been made liable to pay service tax (if he satisfies the conditions of categories of assessees mentioned in the notification) which implies that they are also eligible for abatement of 75% allowed under the notification. Please clarify.

[Surender Gupta]

The action of excise authorities is not correct. You have strong case to fight and eligible to avail the benefit of exemption of 75% even in the capacity of receiver of such service.

AI Summary

GTA abatement: service recipient entitled to claim benefit despite revenue denial, reinforcing eligibility under service tax provisions. Excise authorities contended that the Goods Transport Agency abatement applies only to the provider, not the recipient. The reply states that where the statutory scheme makes the availer liable as an assessee for GTA services, the availer is entitled to claim the notification-based abatement and may contest the show-cause notice.