Goods Transport Agency

This query is : Resolved

Pawan Patil (Querist)
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02 March 2008
Respected Sir,

Is it Service Tax Exampt on GTA (GOODS Transport Agency )as per Budget 2008-09?

Previous Budget 2007-08 ? We have to Pay Service Tax on 25 % of freight value (i.e. 75 % abatement on freight)

Your immediate reply will be highly appreciated

With best regards,

Vilas Choudhari

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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02 March 2008 Nothing related to the concerned was pointed in this budget

MANISH MISHRA

MANISH MISHRA (Expert)
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03 March 2008 now Service tax payable on GTA service shall be only on 25% of the gross amount charged as freight.

GTA service providers shall not be allowed to avail input credit under Cenvat Credit Scheme.

Rule 2(p) is being amended by FB 08 so as to exclude goods transport agency service from the scope of “output service”.

so the present situation is pay service tax on 25% of gross amount as section 67 read with valuation rule.

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