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TMI BlogGTA on service taxX X X X Extracts X X X X X X X X Extracts X X X X ..... When a Goods Transport Agency (GTA) is hired by you for transporting raw material or finished goods or any other purpose relevant to business, liability to pay the service tax on the transport service received will be on the service receiver. As per Service tax Rules, Services provided by a GTA in relation to transportation of goods is leviable to service tax under GTA service [ section 65(105)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zzp) ]. Service tax for the GTA service provided is payable only on 25% of the amount charged for providing the GTA service and the balance amount is exempt from levy of service tax. Service Input Credit on Services Purchased If the Service Receiver pays the Service tax on the gross amount of GTA services received . He will be eligible to avail the input credit of the tax paid on the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices purchased. If the Service provider opts for 75% abatement and pays the service tax on 25% of the Gross Amount GTA services received , then No Credit will be available Please quide, presently it is any changes or stil continue. - Reply By Pradeep Khatri - The Reply = If, the abatement is being availed by the service recipient then there is a condition associated with this optio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that No CENVAT credit will be available to GTA in terms of Inputs, Input Services and on Capital Goods. For this, the service recipient is under obligation to get a declaration from the GTA that No CENVAT credit has been availed by him. This is settled legal position. From 01-07-2012, it is now mandatory get the such declaration for future references, such as Audits etc. - Reply By CA Seeth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... araman K C - The Reply = Presently GTA services are covered under reverse charge mechanism which is covered by Notification no 30/2012 dated 20-6-2012 under which the the person who is liable to pay the frieght if he falls in any one of the following categories has to discharge the 100% service tax liabiilty. The relevant portion of the notification is as reproduced below: GTA services pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is, (a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948); (b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... force in any part of India; (c) any co-operative society established by or under any law; (d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any law including association of persons; - GTA on service tax - Query Started By: - manoj raut Dated:- 28-11-2012 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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