Transport of goods by road by Goods Transport Agency

[Asked by Guest]

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

[YAGAY and SUN]

It means, while providing taxable services, the service provider (Transporter) had not availed the CENVAT credit on vehicles used for providing taxable services.  In this case, abate in rate of tax would be available (i.e. 75% abatement) 12.36% on 25% of the total value.

You would have to get a undertaking/certficate from the concerned transporter that No CENVAT credit was availed by him while providing the taxable services at rebated amount.

Dear Sir,

Thank for your reply...

AI Summary

Abatement for goods transport services requires transporter declaration that no CENVAT credit was availed, permitting reduced taxable value.
Abatement on services by a Goods Transport Agency is available only if the service provider has not availed CENVAT credit on inputs, capital goods or input services used for providing the taxable service under the CENVAT Credit Rules, 2004; practitioners should obtain and retain an undertaking or certificate from the transporter confirming that no CENVAT credit was availed.