GTA + Abatement

This query is : Resolved

CA Brijesh Gandhi (Querist)
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06 July 2009 Suppose the Freight bill received from an GTA on which no service tax is charged ( as freight will be payable by us) contain following items:

Freight RS. 3000
Service Charges RS. 100
Hamali Charges RS. 50
Extra Charges RS. 50
Total Amt. Rs. 3200

The Co. wants to take abatement @ 75%

My Query is:

Service tax payable on 25% of freight will be calculated on RS. 3000 (i.e. on Freight amt. only) or Rs.3200 (i.e. on total amt. including above charges).

Ashok Madhavi

Ashok Madhavi (Expert)
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06 July 2009 Yes you are right, but service tax payable in following case,

1) Single trip freight over & above Rs1400/-
2) in Double trip Freight amount over & above Rs700/-

Regards,

Ashok