SERVICE TAX -GTA, Service Tax

[HITENDRA DAVE]

We are manufacturing company, What will be rate of service tax on GTA for receipent as per new rule? Whether 75% abatment is applicable for receipent? after deposit 25% same we can take credit ?

Posts / Replies

[Pradeep Khatri]

Yes, it will be available provided you get a declaration from the Transporter that no CENVAT credit has been availed on Trucks (Capital Goods).

[vijay kumar]

If you fall under the specified category in terms of Nofn.30/2012-ST, the liability to pay the tax under GTA is on you. The rate of tax is 12.36% on 25% of the freight incurred, in terms of Nofn.26/2012-ST. The condition involved is "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.". If this condition is fulfilled, you can pay the tax on 25% and take credit of the same (inward) and if it is outward transportation, you can take the credit upto the place of removal in terms of Rule 2(l) of CCR, 2004