Dear Sir,
We are a private limited company for exporting engineering goods. We are paying freight to local transporter. In this regard please solve my below mentioned queries.
1. Percentage of payment of service tax. (We are providing on 25% of freight amount.)
2. Can we adjust the above liability against cenvat credit already available.
Please solve the above queires.
Thanks
Ajay Singh
@ Ajay singh,
1. If the amount paid to the transporter of goods by Road is more than Rs750/-, then you will have to pay s.t @ 12.36% on the 25% of the charges paid. (75% abatement as per Notification 26/2012 of S.T. is available).
2. You will have to make the payment in cash only (GAR 7 challan) and no , credit of the amount paid as GTA can be availed.
Anandan.s
P.S : I have shared this as per my work experience. Experts' if Iam wrong, please correct and help Ajay Singh.
CAclubindia
