Abatement on gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2012 As per old rules, abatement on GTA was available @75% i.e. service receipient is required to pay service tax on 25% amt.

As per Notification no.26/2012 abatement is available @25% ? It means service receipient is liable to pay servie tax on 75% amt.?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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02 July 2012 NO, Abatement is still 75% as per the said notification.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 July 2012 Please read the wordings carefully. The notification says that service tax on the amount in excess of 25% of the value of service shall not be payable.

This means that the abatement is 75% and service tax payable shall be calculated on 25% of the value of the service.

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