Service tax in case of gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2014 PLEASE GUIDE IN CASE OF REVERSE CHARGE MECHANISM IN CASE OF GTA. WHAT IS THE SERVICE TAX % OF PAYABLE BY A MANUFACTURE WHO ARE USE GTA SERVICE FOR TANSPORATION OF GOODS ?

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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01 October 2014 Reverse charge applicable on GTA services if such services are received by specified persons as stated in Rule 2(1)(d) of ST Rules and Notif No 30/2012-ST did 20/06/2012.

In GTA 75% abatement is eligible and thus service recipient need to pay service tax on 25% of amount charged. By this budget the requirement of certificate regarding non claim of Cenvat by GTA service provider for claiming abatement has also been dispensed with.

Hope this would settle the issue....