Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Advlorem tax rate

rates 966 views 4 replies

renu dutt

c a

232 Points Posted on 23 April 2015

Dear all,

I want to know what is the advlorem tax rate for the receiver of the service "Transport of goods by road/goods transport agency service. We are a pvt. ltd. co. and pay service tax @ 3.09% on the amount paid to the transporter.In the previous service tax return we get the msg that advolrem tax rate is not correct.can any body guide in this regard.

Replies (4)

ANIL DHANUKA

Self Employed

54 Points Posted on 24 April 2015

W.e.f 01.04.2012 adveloram rate is 12% + 2% + 1% i.e. 12.36%. Services of goods transport agency in relation to transport of goods gets an abatement of 75% and only 25% is taxable i.e. 3.09%. Applicable notification no. Should be used in abatement coloum yo avail the abatement

CA AJAY KUMAR AGRAWAL

PRACTICE

819 Points Posted on 24 April 2015

wef 01-04-2015 rate of abatement is only 70% i.e. effective tax rate will be 3.708%

ANIL DHANUKA

Self Employed

54 Points Posted on 24 April 2015

True, Service Tax Rate Abatement Chart as Applicable from 01.04.2015 updated with Changes Made Vide Budget 2015 and Notification No. 8/2015-ST, Dated: March 01, 2015.

Manoj Agarwal

Service Tax Consultant Rourkela Service

3456 Points Posted on 24 April 2015

Dear Renu,

If you are filing ST-3 Return for the Half Year ended 31-03-2015, you should show total freight paid at column B2.7 (service receiver) and select N/N-26/2012 Sr. No. 7 and claim 75% of total freigh as abatement. At Advolerem Rate, enter 12, 2 and 1 respectively.

For paying tax for the period 01-04-2015 onwards, you claim abatement of 70% i.e. effective tax rate of 3.708% of total freight.