a manufacturer receive transportation service and pay freight to the GTA and finally charge freight + service tax ( on 25% amount) to the customer as per the terms of purchase order. is the co is providing GTA service? can they can avail Abatment scheme as such?
or is this amounts to business axulllary service ?
The manufacturer supplier is not providing any service to its customer. He is just utilising the services of GTA to supply the goods to its customers. The service provided by GTA will fall under the outward transportation of service and the availment of credit of which is still debatable issue. The service tax to be paid on 25% of the amount as pointed out by you.
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