RAJESH AGRAWAL (CHARTERED ACCOUNTANT) (33 Points)
05 January 2010We need to know whether chargbility of tax on Goods transport Serviceone of our client transporting of goods in the State wherehouse Corporation and they have deducted Service Tax @ 3.1% for payment of tax .we want to know the position of law with legal explantion on any amendment in the finance Act 2009 on levy of Goods Transport Services pl giude us.
CA Rajesh Agrawal
Amir
(Learner)
(4016 Points)
Replied 06 January 2010
Dear Rajesh,
1) Rate of Service Tax is 10% +2% Education Cess + 1%Higher Education Cess..i:e 10.3%
2) Abatement of 75% of Gross Charges will be allowed.
3) NO Cenvat Credit on Input Services can be claimed
4) Small Service Provider limit continues to be Rs. 10 Lacs..
5) No Service Tax on Transportation of Milf, Fruits, Vegetables & Eggs
6) Exemption for Rare/Small user's of Service upto Rs. 1,500 & Rs. 750
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