Cenvat credit on gta input service

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2011 Hello Frens...

Can any one help me with the following query. Kindly quote case law or circular/notification.

1. Service tax paid on behalf of transporter which is Input Service for the company. Service tax paid after abatement (i.e. 25% of the 10.3%). Since this is the Input Service, can company take CENVAT Credit of the Service tax paid?

2. What declaration needs to be obtained from transporter whether it has fulfilled the abatement condition? If no declaration obtained, still company can pay 25% s.t. on behalf of Transporter or required to pay full 10.3%?

sachin alwadhi

sachin alwadhi (Expert)
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07 August 2011 yes u can take input credit of service tax paid on incoming material not on outgoing material shippment.

u need to take only consignment note only.u have to pay only service tax on 25% value u need to verify transporter has service tax registration no or not.

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011 I would like to clarify on the issue:

Here I am the output service provider of "Inland Water Service". Where I am providing door to door service, from destination port till customer door I am hiring transport service and pay service tax on behalf of Transporter (which I understand as Input service). Since here I am consignor, and transporting good of my customer by hiring transport service to customers door, can I take Cenvat credit of service tax paid on Input Service?

I am also collecting transport charges (not actual but after adding my profit margin- Yes I have GTA service tax registration also) from my customer. So do I have to charge service tax on such amount? Because I am GTA also liability to pay service tax will be of customer (if company/ co operative etc).

For question number one - as per circular number Circular No 137.85.2007 consignee taking input service of GTA (irrespective of tax paid by consignor or consignee)will be eligible to take cenvat credit of service tax paid.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011 So kindly please suggest me

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2012 Please reply