24 April 2016
SIR, I AM A TRANSPORTER AND MY GROSS BILLING IS 52500/- AND I GET ABATEMENT 70% 36750/- SO THAT 15750 *14/100 = RS.2205/- IS THAT MY SERVICE TAX AND EDUCATION CESS IS RS. 44/- & HIGHER SECONDARY EDUCATION CESS IS RS. 22/- TOTAL TAX 2271/- IS THAT OK OR NOT PLEASE HELP THANKING YOU
25 April 2016
From 1st June 2015 education cess and SHE cess have been merged with service tax and a flat rate of 14% is applied. With effect from 15th November 2015 a Swatch Bharat Cess @ 0.5% of invoice value is leviable which is not eligible for CENVAT Credit.
As a transporter you are eligible for 70% abatement from invoice value. However depending on the service recipient, most cases are covered under Reverse Charge Mechanism and the service recipient is liable to pay the service tax directly to the government and not to the transporter.
CAclubindia
