GTA service tax exemption

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  • Exemption on the basis of goods involved in consignment
  • No service tax will be levied on the transportation of following goods:-
  1. Agricultural produce including flour, tea, coffee, jaggery, sugar, milk products, salt, edible oil except alcoholic beverages.
  2. Chemical fertilizers, organic manure & oil cakes
  3. Newspaper or magazine registered with the Registrar of Newspapers
  4. Relief material
  5. Defence or military equipments
  6. Cotton, ginned or baled.
  • Exemption on the basis of value of consignment.
  • No service tax on low value consignments:-
  1. Gross amount charged for the transportation of goods on a consignment transported in a single goods carriage is upto Rs.1500/- or
  2. Gross amount charged for the transportation of all such goods for a single consignee in the goods carriage is upto Rs.750/-
  • As per notification no 26/2012, an abatement of 75% will be allowed on GTA. This abatement will be availed by the person liable to pay service tax. It means, in case of reverse charge, the service recipient can avail abatement & pay service tax @3.09% i.e. 25% of 12.36%.

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