Clarification of abatement under GTA services, Service Tax

[V K Prasad]

We have taken service tax registration for payment of service tax under GTA as an availer of service. Excise authorities have issued showcause notice stating that abatement under notification no. 32/2004. is available only for Goods transport agency and not for the person who avails such service. As per the provisions of Service Tax, for GTA the availer has been made liable to pay service tax (if he satisfies the conditions of categories of assessees mentioned in the notification) which implies that they are also eligible for abatement of 75% allowed under the notification. Please clarify.

Posts / Replies

[Surender Gupta]

The action of excise authorities is not correct. You have strong case to fight and eligible to avail the benefit of exemption of 75% even in the capacity of receiver of such service.