ABATEMENT UNDER Goods Transport Agency

[Gopalarathnam Muralidharan]

Under GTA Services what is the percentage for abatement.   Is it 75% of the value of Gross service or 25% of the value of Gross service with effect from 01.07.12

AI Summary

Clarification on Goods Transport Agency Service Tax: 75% Abatement, Tax Payable on Remaining 25% from July 1, 2012. A query was raised regarding the abatement percentage for Goods Transport Agency (GTA) services under service tax regulations. The question was whether the abatement was 75% or 25% of the gross service value effective from July 1, 2012. A respondent clarified that the abatement rate is 75%, meaning if the service value is Rs.10,000, the abatement is Rs.7,500, and service tax is payable on the remaining Rs.2,500, which is 25% of the gross service value.