Can service tax input setoff with output tax of abatement

shahul hameed (ACCOUNTANT) (25 Points)

07 August 2015  

Sirs,

Please clarify: Our private limited company has input service tax @ 14% paid for various services received.

We pay freight charges (GTA) for which 75% abatement on service tax is allowed. We remit 3.5% service tax directly to the Central Govt. Can we set off this GTA service tax (3.5%) liability with the regular input service tax (14%).  

Thanking you in advance

Shahul Hameed