12 July 2012
Dear Sir, Our Firm is a partnership firm.We outsource transpot Work to Other they Bill US 75%Abedment & 25%taxable. We also Bill in same Condition Please Clearfy the Transport Charges be Bill is 75 Abedment and 25% Taxable @ 12% is it correct or any changes in the rule.The notification is not understable.
Is their change in rule.Can we take Setoff of Servicetax when we purchase the bills.
12 July 2012
From 01.07.2012, the GTA service provider is not liable to remit any Service Tax under reverse charge mechanism and only the service receiver is 100% accountable.
There is no change in the abatement rule after 1st July, and 75% on the bill value (value Rs.750/-) can be availed for remitting the service tax @12.36%.
Regarding cenvat benefit, it is available for manufacturers for outward transport charges.
12 July 2012
From 1/7/12 the GTA Service Provider is not Liable to remit any Servicetax Under Reverse Charge Mechanism and only The service receiver is 100% Accountable.
That does these sentence mean it didnt understand.
CAclubindia
