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Service Tax

CA Pradeep Kumar Rajput (CA/CS/CMA) (4460 Points)

24 February 2011

there is the invoice of transort company. which include the transportation charges

including escorting charges and supervision charges and and representation charges

However as per the provision in service tax we get 75 % abatement in case of transport of

goods by Road

But in this case charges for more then one services are included in the consolidated amount charges

and the amount is not divided for particular services

So in this case do we entitled for 75% abatement or we pay 10.3% service tax on the whole amount

please support you reply with case laws or provisions

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4 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 24 February 2011

you have to pay 10.30% service tax on whole amount..

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Pankaj Arora (Learner) (3134 Points)
Replied 24 February 2011

you have to pay 10.30% service tax on whole amount..

CA Pradeep Kumar Rajput (CA/CS/CMA) (4460 Points)
Replied 24 February 2011

Thats ok but is there any provision in the regarding such situation

CA Chintan Vyas (Chartered Accountant) (116 Points)
Replied 25 February 2011

The scope of the service covers any service provided by the goods transport agency in relation to transport of goods by road in goods carriage. Goods Transport Agency is any person who provides service in relation to transport of goods and issues a consignment note ( by whatever name it is called). The consignment note should be serially numbered and it should contain name and address of the consignee and consignor, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax, whether consignee or consignor or the goods transport agency.

Exemptions:

1. Notification No.32/2004 dated 03.12.2004– Abatement of 75% on the gross amount charged for providing the service, subject to the condition that no credit of inputs or capital goods is availed while providing such service. This Notification has been rescinded vide Notification No.2/2006 dated 01.03.2006. However, the same benefit of abatement is provided vide Notification No.1/2006 dated 01.03.2006

2 Notification No.33/2004 dated 03.12.2004– Exemption to transport services rendered by an agency in relation to vegetables, fruits, eggs and milk

Notification No.34/2004 dated 03.12.2004– Exemption to GTA – subject to condition that amount charged is Rs.750 / Rs.1500