Abatement - Services of goods transport agency - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 7 Services of goods transport agency (w.e.f.:1.7.2012) Scope of abated service - Notification no 26/2012-ST dated 20.6.2012 From 1.7.2012 to 10.7.2014 7. Services of goods transport agency in relation to transportation of goods. Effective Rate of tax : 25% of Service Tax prescribed u/s 66B Conditions : CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. From 11.7.2014 to 31.3.2015 - Not 08/2014 - Dated 11.7.2014 7. Services of goods transport agency in relation to transportation of goods. Effective Rate of tax : 25% of Service Tax prescribed u/s 66B Conditions : CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004. From 1.4.2015 to 31.3.2016 - Not. 08/2015 - Dated 1-3-2015 7. Services of goods transport agency in relation to transportation of goods. Effective Rate of tax : 30% of Service Tax prescribed u/s 66B Conditions : CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004. From 1.4.2016 - Not. 08/2016 - Dated 1-3-2016 7. Services of goods transport agency in relation to transportation of goods other than used household goods. Effective Rate of tax : 30% of Service Tax prescribed u/s 66B Conditions : CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004. Definitions and meanings: 65B (26) goods transport agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called; 65B (25) goods means every kind of movable property other than actionable claim and money; and includes securities, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; Circular attached: Circular No.186/5/2015-ST: If ancillary services are provided in the course of transportation of goods by road and the charges for such services are included in the invoice issued by the GTA, and not by any other person, such services would form part of GTA service and, therefore, the abatement of 70%, presently applicable to GTA service, would be available on it. It is also clarified that transportation of goods by road by a GTA, in cases where GTA undertakes to reach/deliver the goods at destination within a stipulated time, should be considered as services of goods transport agency in relation to transportation of goods for the purpose of notification No. 26/2012-ST dated 20.06.2012 , serial number 7, so long as (a) the entire transportation of goods is by road; and (b) the GTA issues a consignment note, by whatever name called.