TRANSPORT OF GOODS BY ROAD

[SUMEDH AYARE]

WE ARE RECEIVING SERVICES FROM GTA. NOW GTA IS UNDER REVERSE CHARGE.

WHAT SHOULD BE THE POINT OF TAXATION  I.E.,  PAYMENT  OR  BILL BOOKING ? 

WHETHER WE CAN TAKE ABATEMENT OF 75% ?

AI Summary

Clarification on Service Tax: Point of Taxation for GTA Services Based on Invoice Date; 75% Abatement Applicable. A query was raised regarding the service tax obligations for services received from a Goods Transport Agency (GTA) under the reverse charge mechanism. The inquirer asked about the point of taxation, specifically whether it should be based on payment or bill booking, and whether a 75% abatement could be claimed. The response clarified that the point of taxation is determined by the date of invoice issuance or bill booking, provided the invoice is issued within 30 days of the service being provided or payment received. It was confirmed that a 75% abatement is applicable under the specified notification.