Bookmarks   Feedback   Annual Subscription   New User   Login  
Tax Management India .com   
   TMI - Tax Management India. Com   
AO cannot re-open assessment merely for non filing of ITR unless the total income is exceeding maximum amount which is not chargeable to tax    *    Companies Act, 2013-25 Key Highlights    *    status foodgrain pulses and oilseed    *    Service tax exemption for transportation of life saving medicines    *    Applicability Of Service tax on Liquidated Damages    *    Goods and GST Bill passed    *    WITH GST CONSTITUTIONAL AMENDMENTS, WHAT NEXT ?    *    determination of assessable value for job work transaction    *    CENVAT CREDIT    *    Excise Cenvat credit on Electricity Power bill    *    Employees sent on deputation to subsidiary/ associate companies (Service Tax)    *    GLOW SIGN AND HOARDING    *    Regarding cenvat credit on service tax on rent a cab    *    Potato Chips as Namkeen    *    Central Excise Exemption of ₹ 150 Lakhs    *    Cenvat credit on water treatment plant    *    Cenvat Credit - refund - export of services - The registration is not the sole criteria for granting refund, so long the other conditions are satisfied, refund shall be granted - Tri    *    CENVAT credit demo cars capital goods input nothing is demonstrated today that a demo car falls in any of the Chapters dealing with capital goods - credit cannot be allowed - Tri    *    Period of limitation - in case duty was required to be paid on the strips, the appellant was entitled to avail credit of duty paid on the granules, which would have neutralized the entire demand on the strips - in this Revenue neutrally background, there could be no malafide on the part of the appellant to evade duty - Tri    *    Validity of statutory provisions - Imposition of penalty on company and directors - he legislature while in view of such situation has granted discretion to the executive, at the same time, provided for sufficient guidelines and safeguards so that such discretion does not convert into arbitrary or discretionary exercise of powers - HC    *    Strengthening Our Debt Markets (Dr. Raghuram G. Rajan, Governor - August 26, 2016 - at Annual Day Address to Foreign Exchange Dealers Association of India, Mumbai)
Discussions Forum
Home Forum Service Tax
← Previous Next →


#1 Issue Id: - 2583
Dated: 2-1-2011
By:- sanjeev jadhav

  • Forum
Dear Sir, We are manufacturer and exporting our goods. We are paying service tax on inward as well as on ourward freight. My query is that while calculating service tax on GTA, can we deduct freight amount releated to export of goods. For example inward freight is 100000/- and Outward freight is 50000/- which includes Rs. 40000/- freight related to export of goods. Can we have to pay ST as per below: Inward freight = 10.3% on Rs. 100000/- = 10300.00 Outward freight = 10.3% on Rs. 10000/- = 1030.00 (50000 - 40000 = 10000) Is above calculation is correct ? Please also give clarification of Notf. No. 18 & 19/2009 dated 7.7.2009. For calculating service tax above is it necessary to submit declaration as mentioned in the above notifications.

Post Reply

Posts / Replies


#2 Dated: 3-1-2011
By:- Mangesh Lokre

Central Government has issued notification No.29/2008-Service Tax, dated 26.06.2008 to exempt fully from levy of service tax on supply of transport vehicles (goods carriage) to a goods transport agency (GTA) to be used for transport of goods by road [section 65(105)(zzzzj) of the Finance Act, 1994].

Services provided by a GTA in relation to transportation of goods is leviable to service tax under GTA service [section 65(105)(zzp)]. Service tax for the GTA service provided is payable only on 25% of the amount charged for providing the GTA service and the balance amount is exempt from levy of service tax.

If your freight is Rs 10000, then the ST to be paid on Rs 2500 Only.

Being outward transportation is not your output service, you cann't deduct this freight. You have to pay the Service Tax on both Inward and Outward transportation.

You have Two Options

1.     Either Go For Refund on Service Tax Paid on the Export Service ( refer the Notification No 41/2007-ST, dated 6/10/2007)

2.     Or Avail the Exemption benefit under Notification No 18/2009-ST date 07-07-2009,

Only The conditions are for fulfill are

1.     You have to made an application with the Assistant / Dy Commissioner of Central Excise having Jurisdiction over the factory in the form EXP1

2.     Once the application accepted by the AC/DC, you may avail the exemption by quoting the relevant Approval Reference Nos on the Bill

3.     You have to file the half yearly return of these exempted services in Form EXP2 as specified in the said Notification.

#3 Dated: 4-1-2011

Dear Mr. Sanjeev Jadhav answers to your querry are as below :

1.While making payments of service tax on GTA , you can avail the abatement of   75 % of amount liable to pay and for balance you have to pay the service tax @ 10% , ed cess 2% on service tax and SHED Cess 1 % on service tax.

2. From practical point of view , you prepare three  GAR - 7 challans :

    a) Service Tax @ 10.30% on Inward freight Rs.100000 = Rs.2575 ( Including   ED & SHED Cess ) , here you can take Cenvat Credit

    b) Service Tax @ 10.30 on Freight paid on Export Rs.40000 = Rs.1030  Including   ED & SHED Cess ) , here you can file claim of refund refer noti, 17/2009 ST 08.07.2009 or else you may follow procedure as per Noti. No 18/2009 ST 08.07.2009 and need not required to pay service tax

   c ) Service Tax @ 10.30% on Freight outward Rs.10000 = Rs.258 /- here as whether to take cenvat credit please seek Consultant Advice but as per law and dept. assessee is not eligible to take the cenvat credit.

Preparation of three challans are not mandatory , but it become very easy to us for taking cenvat credit , filing of refund claim etc.





CELL 9421187122




#4 Dated: 4-1-2011
By:- Mangesh Lokre


It is no doubt that one can avail the Cenvat Credit of Service Tax Paid on the Inward Tranportation. But for Outward transportation, there are some limitation.

You cannt avail the Cenvat Credit on Outward Transportation beyond the scope specified in the circular No 97/8/2007 ST dated 23.08.2007

In case of Export Service ( GTA ) you can only go for Refund or Exemption as specified in Notification No 18/2009-ST


Post Reply


← Previous Next →
what is new what is new

Advanced Search

Latest Updates




More Options


|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map || ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version