Service tax--Property Rent and GTA services

Hi Prasad,

There's no question of taking the amount incurred towards availing GTA services into account for determining the ceiling of Rs 8 lacs. See what the original notification No 6/2005 dated 1st March 2005 exempting services up to the value of Rs 4 lacs (now Rs 10 lacs) says at point 3: [3. For the purposes of determining aggregate value not exceeding four lakh rupees, to avail exemption under this notification, in relation to taxable service provided by a GOODS TRANSPORT AGENCY, the payment received towards the gross amount charged by such goods transport agency under section 67 for which the person liable for paying service tax is as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994, shall NOT be taken into account.]Under Section 68(2) the liability to pay service tax may be reversed—that is someone other than the service provider may be made liable to pay the ST. And vide Notification no 36/2004 dated 31st December 2004, the government has specified services in relation to transport of goods i.e. the GTA services, as those where the service recipient will be liable to deposit ST. So clearly, in your case only Rs 2.50 lacs, the rent of immovable property will be taken into account to determine whether you've breached the ceiling of Rs 8 lacs.

Thanks,

CA Sanjeev Bedi

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ICAI_CIRC_MEERUT_ CA@yahoogroups. com, prasad naidu wrote:>> Dear All> > I have a private ltd company which gives the commercial property on rent. The rent comes around 2.5 lakhs. But the company also gets the service of GTA which the company pays after taking the 75% abatement( which more than a crore). My doubt is whether the exemption limit of 8 lakhs can be availed for the rent from house property or we have to take the GTA also in to account. please clarify ASAP.> > Thanks in advance> > > > CA PRASAD K> Chartered Accountant> Ph.093810 39044