19 September 2013
Goods transport freight for single consignee up to Rs.750 and for single vehicle up to Rs.1500 is exempt. Service tax has to be paid only on 25% of the gross amount paid to the Goods Transport Agency. For gross amount, octroi is not taken in account. The tax is payable on reverse charge basis by consignor or consignee who ever pays the freight, if the consignor or the consignee is factory, registered society, co-operative society, registered dealer, body corporate, partnership firm, LLP and association of persons. If the goods transport agency has charged service tax then no service tax is payable by consignor or consignee. To avail abatement , condition is "CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004."
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