Payment of service Tax on service catagory Supply of Tangible goods -Reg

[vinay wakde]

We are giving our own barges on hire & we are receiving shipping income.  We are  paying service tax  under service catagory 'Supply of Tangible Goods' on 75% of the shipping income received by us  (abatment  25%).

Kindly let us know from 01.07.2012 onwards, service tax to be paid on 50% of the amount received  by us i.e. abatment 50% instead of 25% available prior to 01.07.2012 for said catagory.

Regards,

VINAY

   

[vinay wakde]

The service catagory inadvertently mentioned as "Supply of Tangible goods" instead of Transportation of coastal goods (Payment of ST on reversed charged method). Regards, VINAY

AI Summary

Service tax abatement change reduces share of shipping income from barge hire, aligns classification to coastal transport under reverse charge. Payment obligation concerns service tax on income from hiring owned barges, initially treated under the Supply of Tangible Goods category with an abatement applied; the correct classification is Transportation of coastal goods, attracting tax consequences under the reverse charge mechanism and requiring calculation of taxable value using the abatement applicable from the stated effective date.