Service Tax on GTA

you are correct. service tax on GTA is paid only if the transporter is not paying service tax and he is not having service tax reg number.

and i think service tax is paid only when bill amt exceeds 750Rs ( if it is exclusive for your firm then 1500Rs).

and we got to pay service tax for carriage out wards also( delivery charges paid to give producy delivery to customer place)

Dear  Pratik &  Kaya

as per the service tax rules liability to pay service tax on GTA  is Company & partnershipfirm whose make a payment to the transporter, but if the GTA service availed by the individual then the liability of Servicetax payment go on Transporter,

further more when the goods sold on FOR basis & the place of removal is buyer's factory gate then we can availed the CENVAT credit of service tax on outward transporation.

moreevere the liabilti to pay service tax occuered when the freight is more then Rs. 1500/- for single lorry & 750/- when more then one party goods come in one lorry

 ONE THING MORE:

YOU CANNOT AVAIL UTILISE CENVAT CREDIT OF SERVICE TAX PAID ON OTHER SERVICES RECEIVED FROM THE SERVICE TAX LIABILITY OF GTA.

REGARDS,

CA RITESH KOTHARI

Please check... CENVAT credit is not available for GTA services....

Please check... CENVAT credit is not available for GTA services.... ???

Check it where....please ellaborate

 IT IS THERE IN THE ACT ITSELF.

IF YOU ARE AVAILING THE BENEFIT OF 75% ABATEMENT THEN CENVAT CREDIT IS NOT AVAILABLE

Can you please provide the extracts of the rules/act where it states that " AVAILING THE BENEFIT OF 75% ABATEMENT THEN CENVAT CREDIT IS NOT AVAILABLE"

Can you please privde the relevant extract from the Act / Notification.

 Govt has already  clarified in the Notification it-self that Service Tax Liability is  to be discharged in CASH,  you can not use CENVAT CREDIT  as 75% Abatement is available . That means for the payment of Rs 100 / towards Transportaion Charges you have to pay only :-

Transportation Charges                      Rs 100-00

Less : Abatement                                  Rs   75-00              Balance Rs     25-00

Service Tax Liability @ 10.30%   on Rs 25-00   Rs 2-575 that shows GTA SERVICE TAX LIABILITY is only 2-575% only.

see mr. Prateek... mr.suren is correct.... there is one exemption also... If the  Transporation charges is below Rs 750/- in a single cosignment service tax is not attracted... also if the goods is transport in asingle vehicle from a different consignor but to the single consignee the exemption limit is Rs1500/-... i am not remember the circular/ notification no:...

Let me rephrase my query:

I am a manufacture registered with Excise department.

I pay Carriage Inward on raw material received. The Service Tax I pay on Carriage Inward (for individual bills >750) is calculated as follows: Bill Amount * 25% * ST rate. (i.e. I take 75% abatement). The above Service Tax is paid in CASH.

Now this service tax that I have paid for carriage inward can I  adjust the same with the Excise duty payabel ? ( If i need to pay Excise Duty of 75,000/- and I have paid 3,000/- of Service Tax on Carriage Inward, can i pay only 72,000/- and claim 3000/- as credit)

If the answer is "NO" ...i cannot claim credit for the ST paid in cash for Carriage Inward.....then please provide the relevant Notification or abstract from the Act/Rules.

Thanks

hai Mr. Prateek, Sorry for Delay Response....

Please See Notification No:13/2008 ST dated 1-3-2008... w.e.f 1.3.2008 CENVAT credit is cannot be available for GTA services...

The Notification states

"Notification New Delhi, the 1st March, 2008
No. 13/2008-Service Tax 11 Phalguna, 1929 (Saka)

G.S.R. (E).–In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to any person in relation to transport of goods by road in a goods carriage, referred to in  sub-clause (zzp) of clause (105) of section 65 of the  Finance Act, from so much of the service tax leviable thereon under section 66 of the  Finance Act, as is in excess of the amount of service tax calculated on a value equivalent to twenty five per cent. of the gross amount charged  by the goods transport agency for providing the said taxable service.

2. This notification shall come into force on the 1st day of March, 2008.

(Unmesh Wagh)
Under Secretary to the Government of India
[F. No. 334/1/2008-TRU]"

Please help me understand, Where does it say CENVAT credit cannot be availed