Transport of goods by road by Goods Transport Agency

[varsha mehta]

Dear Sir/Madam,

Transport of goods by road by Goods Transport Agency:  ABATEMENT ALLOWED with condition is CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under  CCR, 2004.

Kindly clarify me what is means of the said condition.

Whether we need to obtain a certificate from transporters to this effect or not.

Thanks

AI Summary

Transporters Must Avoid CENVAT Credit on Vehicles for 75% Service Tax Abatement on Road Goods Transport. A user inquired about the conditions for availing abatement on service tax for goods transported by road through a Goods Transport Agency, specifically regarding the requirement of not taking CENVAT credit on inputs, capital goods, and input services. A respondent clarified that the transporter must not have availed CENVAT credit on vehicles used for taxable services to qualify for a 75% abatement on the service tax rate. The user was advised to obtain a certificate from the transporter confirming that no CENVAT credit was claimed while providing the services.