Cenvat credit on gta paid

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2016 Dear Sir,

we are working on the basis of job work manufacturer for some oil companies like BPCL

We are agreeing transporter for transfer of material form our factory to oil companies depots.

We have added this transportation cost in our job costing means we are not charging the same separately in our sales invoice.

We are making payment to Transporter and paying RCM - GTA on these transporter invoices. so if we can take cenvat credit of this RCM payment, Please advice.

Thanks & Regards,
Sanjay Shinde.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 September 2016 You will not be paying any excise duty on this material to claim cenvat credit. It is only the oil companies can claim cenvat credit on excise duty paid. They are only liable to pay service tax under RCM if transportation charges is paid by them.
No service tax payable if transportation is arranged through transport contractors who don't issue consignment note.