Service tax credit on qutward freight

This query is : Resolved

Dharam K Karma (Querist)
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22 October 2011 Dear All,

I HAVE TAKEN SERVICE TAX CREDIT ON OUTWARD FREIGHT (GTA) BOW I WANT TO KNOW WHETHER I WOULD HAVE TO REVERSE THE CENVAT CREDIT SINCE ONE OF COLLEAGUES HAS POINIED OUT THAT SERVICE TAX CREDIT IS NOT AVAILABLE ON OUTWARD FREIGHT

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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22 October 2011 In case of GTA when Receiver pays service tax he must actually pay, he cannot utilise Cenvat credit balance but after payment his cenvat credit will increase.

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ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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23 October 2011 Yes the service receiver has to pay the liability arised on GTA and then should claim for cenvat credit.

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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23 October 2011 service tax credit on cartage outward not allowed.

S.Siju Gemin

S.Siju Gemin (Expert)
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29 October 2011 Is courier services like DTDC, Professional courier, DHL etc. are also under the perview of GTA. Can't we take credit for sending letters related to business etc.,

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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31 October 2011 No. this will not come under GTA service. However you take cenvat credit on st paid.