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

[Udaya Chandran]

The abatement rate for GTA services is 75%.  If the value of service is Rs.10000/-, the abatement rate is Rs.7500/- (10000 x 75%) and you have to pay service tax on Rs.2500/- (25% of Rs.10000/-)

AI Summary

GTA service abatement confirms majority deduction from gross value, leaving a reduced taxable value under service tax. Under Goods Transport Agency services the abatement is 75% of the gross value, leaving 25% of the gross consideration as the taxable value for service tax; e.g., on a gross value of 10000 the abatement is 7500 and tax is payable on 2500.