Freight on transportation by road

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2012 My company is paying service tax on Transportation charges by availing abatment.ist it applicable after 1-7-2012 also as per negative list it is exempted
please clarify me

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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27 June 2012 Service tax on Transportation of Goods by road remain same as previous (Notification 30/2012-ST dt. 20-06-2012 ) under reverse charge method where in service receiver has to pay service to the extent specified here 100%. Abatement of 75 % shall also be allowed.

However by vide mega exemption notification 25/2012-ST dt. 20-06-2012 provides exemption for GTA where Services provided by a goods transport agency by way of transportation of -

(a) fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;
(b) goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or
(c) goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty.

Note that the above notifications will be in force from 01/07/2012.