Service tax on transportation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2011 dear sir/Mam!!!

I m working in a infrastructure Company and here i m seeing that some transporter is charging service tax@ 10.3% on their bill and some are charging 2.575%. As per my knowledge if Consigner/consignee paying service tax to the goverment on half of transporter then we can pay @2.575% but if transporter is collecting he should collect only 10.3% from
the party.

Please suggest/teach me the right concept!!!!!!

U S Sharma

U S Sharma (Expert)
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08 November 2011 such service providers are not GTA only, but they have used GTA services on behalf of you, and claimed input credit,

once input credit is avalied, abatement of 75% can not be claimed.