transportation limit

This query is : Resolved

Nitesh Sethiya (Querist)
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06 February 2009 Dear Sir,

We have paid transportation on purchase of raw material.

Tell me what is the exemption limit for payment of service tax.

My current freight payment is Rs. 975000

for service tax exemption limit 25% i.e.243750 count or full 975000/-

VISHAL KUMAR SHAW

VISHAL KUMAR SHAW (Expert)
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06 February 2009 there is abatement of 75% in GTA for the payment of service tax if all the condition is satisfied reagrding the payment of service tax then service tax should be paid on 25% of 975000/- i.e.243750/-

Nitesh Sethiya

Nitesh Sethiya (Querist)
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06 February 2009 Pls tell me if I am doing Job work on this factory then what amount is included in total exemption limit.

transortation 25%+ Job work amount
or
Transportation 100% + Job work amount

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K V Subba Rao

K V Subba Rao (Expert)
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06 February 2009 Please visit http://dateyvs.com/service01.htm and take note of the following:

"In case of services of Goods Transport Agency (GTA), service tax is payable by consignor/consignee who is paying freight [rule 2(1)(d)(v)] [However, the consignor/consignee is not entitled to avail exemption available to a small service provider"

However, I suggest you to email your query to dateyvs@yahoo.com for free advice and free reply to queries

I once referred one serious problem relating to Company I am working for and got Sri Datey's advice. Sri Datey's books are published by Taxmann