Transport of goods by road by Goods Transport Agency , Service Tax

[varsha mehta]

Dear Sir/Madam,

Transport of goods by road by Goods Transport Agency:  ABATEMENT ALLOWED with condition is CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under  CCR, 2004.

Kindly clarify me what is means of the said condition.

Whether we need to obtain a certificate from transporters to this effect or not.

Thanks

Posts / Replies

[Pradeep Khatri]

It means, while providing taxable services, the service provider (Transporter) had not availed the CENVAT credit on vehicles used for providing taxable services.  In this case, abate in rate of tax would be available (i.e. 75% abatement) 12.36% on 25% of the total value.

You would have to get a undertaking/certficate from the concerned transporter that No CENVAT credit was availed by him while providing the taxable services at rebated amount.

[varsha mehta]

Dear Sir,

Thank for your reply...