Service tax on gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2012 Dear All,

I want to know that after 01/07/2012, service tax receiver is liable to pay 100% service tax (instead of 25%) on freight outward & if yes then can he will take any credit on this ?

sri rama krishna mallela

sri rama krishna mallela (Expert)
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27 August 2012 Even after implimentation of negative list of service tax, there is no change in case of gta. The receiver has to pay service tax on the gta service according to reverse charge mechanism. and the 75% abatement is still in existance. So if Rs. 100/- is the charge in gta service the amount of service tax to be paid by servic receiver is eqal to 100*25%*12.36%. And this is allowed as cenvat creidt.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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27 August 2012 Agree with the expert's reply.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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27 August 2012 100% means, the GTA is not responsible for any tax payment and it is the service receiver. In the 100% working, the service receiver can avail 75% abatement and 25% only payable.

I think the query is solved.