Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Abatement on gta

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

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)
Follow

02 July 2012 NO, Abatement is still 75% as per the said notification.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now