TaxTMI 
TaxTMI 
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 ?
SERVICE TAX -GTA
11 Aug 2012 
2 Replies 
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Service tax on goods transport agency: taxable portion of freight and recipient liability hinge on CENVAT credit conditions.
Service tax on goods transport agency services is chargeable on the recipient when statutory provisions allocate recipient liability. Tax is computed on a taxable portion of freight where an abatement applies, contingent on the condition that no CENVAT credit has been availed on inputs, capital goods or input services used to provide the service. A transporter's declaration that no CENVAT credit was taken on capital goods supports the abatement. If the recipient pays tax under the recipient-liability provision and the credit condition is met, the recipient may claim input credit of the tax paid on inward transportation, and for outward transportation credit is available up to the place of removal under CENVAT rules. (AI Summary)
Service tax on goods transport agency services is chargeable on the recipient when statutory provisions allocate recipient liability. Tax is computed on a taxable portion of freight where an abatement applies, contingent on the condition that no CENVAT credit has been availed on inputs, capital goods or input services used to provide the service. A transporter's declaration that no CENVAT credit was taken on capital goods supports the abatement. If the recipient pays tax under the recipient-liability provision and the credit condition is met, the recipient may claim input credit of the tax paid on inward transportation, and for outward transportation credit is available up to the place of removal under CENVAT rules. (AI Summary)