SERVICE TAX -GTA

[HITENDRA DAVE]

We are manufacturing company, What will be rate of service tax on GTA for receipent as per new rule? Whether 75% abatment is applicable for receipent? after deposit 25% same we can take credit ?

[YAGAY andSUN]

Yes, it will be available provided you get a declaration from the Transporter that no CENVAT credit has been availed on Trucks (Capital Goods).

[Vijay kumar]

If you fall under the specified category in terms of Nofn.30/2012-ST, the liability to pay the tax under GTA is on you. The rate of tax is 12.36% on 25% of the freight incurred, in terms of Nofn.26/2012-ST. The condition involved is "CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.". If this condition is fulfilled, you can pay the tax on 25% and take credit of the same (inward) and if it is outward transportation, you can take the credit upto the place of removal in terms of Rule 2(l) of CCR, 2004

AI Summary

Manufacturing Firm Queries Service Tax on GTA Services; Clarification on 75% Abatement and CENVAT Credit Rules Explained A manufacturing company inquired about the service tax rate on Goods Transport Agency (GTA) services for recipients under new rules, questioning the applicability of a 75% abatement and the possibility of taking credit after depositing 25%. One response clarified that credit is available if a declaration from the transporter confirms no CENVAT credit on trucks. Another response explained that if the company falls under the specified category per Notification 30/2012-ST, it must pay tax on 25% of the freight at a 12.36% rate, provided no CENVAT credit is taken on inputs, capital goods, or input services.