What was the tax levied on goods transport through the road?
Sr No. 9(iii) of that para prescribes 2.5 % Central Tax rate for Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use) with the condition that “credit of input tax charged on goods and services used in supplying the service has not been taken”.
What is abatement under service tax?
In commercial law, it means an allowance of discount made for prompt payment. In reverse law, abatement is a deduction from or refunding of duties on taxes on goods etc. In case of debts, abatement would mean reduction of payment where a fund is insufficient to meet all the claims. One who abates is called abator.
Is transportation exempted from GST?
Thus, it is to be seen that mere transportation of goods by road, unless it is a service rendered by a goods transportation agency, is exempt from GST. Under GST laws, the definition of Goods Transport Agency is provided in clause (ze) of notification no. 12/2017-Central Tax (Rate) dated 28.06. 2017.
Is RCM applicable on transportation of exempted goods?
Please clarify whether a GTA providing service in relation to transportation of goods by road under reverse charge mechanism (RCM) can avail of the benefit of this exemption. Answer: Yes, a GTA providing service in relation to transportation of goods by road under RCM can avail of the benefit of this exemption.
Is service tax applicable on transport?
Taking into account the special nature of the goods transport agency (GTA) service, it is being exempted from the payment of service tax unconditionally to the extent of 75% of the freight. In other words, service tax is required to be paid only on 25% of the freight irrespective of who pays the service tax.
What is the GST rate for road transport?
What is the rate of GST on GTA?
| Service by a GTA | GST rate |
|---|---|
| Carrying- goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750 | 0% |
| Any other goods | 5% No ITC OR 12% with ITC |
| Used household goods for personal use | 0% ** |
Is transport charges subject to GST?
If the transportation cost is included, then GST has to be charged at the same rate of tax charged on supply. For example, if the goods being supplied is charged at 18%, then you have to charge tax on transport cost also at 18%.
Is RCM applicable on transport services?
Even composition dealers are liable to pay GST under RCM. Anand will pay GST on RCM if he hires a GTA whether he is registered as a composition dealer or as a normal dealer….What is the rate of GST on GTA?
| Service by a GTA | GST rate |
|---|---|
| Transporting goods (GST paid by GTA)* | 5% No ITC or 12% with ITC |
Can we take input on transportation?
ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver). However, ITC is available if the seating capacity of such motor vehicles exceeds 13 persons. Further, ITC is not available on vessels and aircrafts.
What is transportation tax?
Transportation tax. Tax levied on vehicles, ships and aircraft using public highways, rivers, and airports maintained by the government.
What is the tax abatement for air travel?
Transport of passengers by Air – Hitherto, an abatement of 60% was provided on taxable services of transport of passengers by air (with or without accompanied belongings). The said abatement continues for economy class travel and in case of other than economy class the abatement has been reduced to 40%.
Which is an example of a tax abatement?
4. Transport of goods in a vessel – Abatement on “Transportation of goods in a vessel” was 60% which has now been increased to 70%. 5. Transport of passengers by Air – Hitherto, an abatement of 60% was provided on taxable services of transport of passengers by air (with or without accompanied belongings).
What does it mean to get a service tax abatement?
In service tax provisions, this term is used for amount allowed to be deducted from value of taxable service, expressed in percentage terms. It is a kind of discount given for arriving at the value of a taxable service provided on which tax is required to be calculated and paid.
When was service tax imposed on goods transport agency?
Earlier, The Finance Act, 1997 had levied Service Tax on Goods Transport Operators w.e.f. 16-11-1997 which was subsequently withdrawn after nation-wide strike. Thereafter by the Finance (No. 2) Act, 2004 Service Tax has been imposed on Transport of Goods by Road service rendered by any goods transport agency with effect from 10-09-2004.