Can we avail service tax on Good transport agency .
This query is : Resolved
03 March 2008
New Delhi, the 1st March, 2008
Notification No. 13/2008-Service Tax 11 Phalguna, 1929 (Saka)
G.S.R. (E).–In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to any person in relation to transport of goods by road in a goods carriage, referred to in sub-clause (zzp) of clause (105) of section 65 of the Finance Act, from so much of the service tax leviable thereon under section 66 of the Finance Act, as is in excess of the amount of service tax calculated on a value equivalent to twenty five per cent. of the gross amount charged by the goods transport agency for providing the said taxable service.
2. This notification shall come into force on the 1st day of March, 2008.
It means now we have to pay 25% service tax on transport service & we can claim also it as input. Whether I am correct or not. Please answer asap.
Notification No. 13/2008-Service Tax 11 Phalguna, 1929 (Saka)
G.S.R. (E).–In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to any person in relation to transport of goods by road in a goods carriage, referred to in sub-clause (zzp) of clause (105) of section 65 of the Finance Act, from so much of the service tax leviable thereon under section 66 of the Finance Act, as is in excess of the amount of service tax calculated on a value equivalent to twenty five per cent. of the gross amount charged by the goods transport agency for providing the said taxable service.
2. This notification shall come into force on the 1st day of March, 2008.
It means now we have to pay 25% service tax on transport service & we can claim also it as input. Whether I am correct or not. Please answer asap.
03 March 2008
NOW Service tax payable on GTA service shall be only on 25% of the gross
amount charged as freight.
GTA service providers shall not be allowed to avail input credit.
under Cenvat Credit Scheme. Rule 2(p) is being amended so as to exclude goods transport agency service from the scope of “output service”.
amount charged as freight.
GTA service providers shall not be allowed to avail input credit.
under Cenvat Credit Scheme. Rule 2(p) is being amended so as to exclude goods transport agency service from the scope of “output service”.
03 March 2008
DEAR MR. MANISH,
WHETHER YOU ARE CONFIRM ABOUT IT.
BECAUSE OUR EXCISE CONSULTANT TELLS US THAT WE CAN CLAIM IT.
PLEASE CHECK AGAIN
THANKS FOR REPLY.
WHETHER YOU ARE CONFIRM ABOUT IT.
BECAUSE OUR EXCISE CONSULTANT TELLS US THAT WE CAN CLAIM IT.
PLEASE CHECK AGAIN
THANKS FOR REPLY.
03 March 2008
You can claim only if it is paid on inward freight
It still stands to be disallowed in term of outwards and allowable on outward upto the place of removal
There is no abmiquity on this now.
It still stands to be disallowed in term of outwards and allowable on outward upto the place of removal
There is no abmiquity on this now.
03 March 2008
No service tax credit of outward freight from the place of removal is allowed.
Credit is allowed for inward transportation and outward transportation upto the place of removal.
In case of GTA, the person paying freight has to pay the service tax on 25% value of the freight.
Credit eligibility depends upon whether the input service is used in or in relation to manafacturing of excisable goods either directly or indirectly.
arbindaggarwal@yahoo.com
Credit is allowed for inward transportation and outward transportation upto the place of removal.
In case of GTA, the person paying freight has to pay the service tax on 25% value of the freight.
Credit eligibility depends upon whether the input service is used in or in relation to manafacturing of excisable goods either directly or indirectly.
arbindaggarwal@yahoo.com
03 March 2008
Dear all,
Till now, if we pay service tax on 25% value of freight, then no credit is allowed whether it is related to freight inward or outward.
My doubt is that now after budget we can claim service tax on 25% value of freight if it is related to inward transportation & in relation to manfacturing acitivites.
Thanks for reply.
Till now, if we pay service tax on 25% value of freight, then no credit is allowed whether it is related to freight inward or outward.
My doubt is that now after budget we can claim service tax on 25% value of freight if it is related to inward transportation & in relation to manfacturing acitivites.
Thanks for reply.
03 March 2008
Dear all,
Till now, if we pay service tax on 25% value of freight, then no credit is allowed whether it is related to freight inward or outward.
My doubt is that now after budget we can claim service tax on 25% value of freight if it is related to inward transportation & in relation to manfacturing acitivites.
Thanks for reply.
Till now, if we pay service tax on 25% value of freight, then no credit is allowed whether it is related to freight inward or outward.
My doubt is that now after budget we can claim service tax on 25% value of freight if it is related to inward transportation & in relation to manfacturing acitivites.
Thanks for reply.
04 March 2008
Dear B.K. Bansal Please read the Ntification No.10/2008-Central Excise (N.T)(for amendment in CENVAT Credit Rule 2004)
and Notification No. 13/2008-Service Tax
and Notification No. 13/2008-Service Tax
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