Credit of setvice tax-gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2011 Hi, We are the Manufacturer of Air Conditioners

The transport service is being provided by the ‘goods transport agency’ and the we, excise assessee pays the service tax only for the reason that the liability for payment of service tax has been shifted to the service receiver. We are paid on the basis of Abatement i.e.25% of Services.

Now my question is, Can we avail cenvat Credit for the same?
Means can we pay our Excise liability out of Service tax receivable

Please guide, Thanks in Advance

Rajagopalakrishnan R

Rajagopalakrishnan R (Expert)
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26 September 2011 Yes you can definitely avail Cenvat Credit on GTA Service tax paid by you. This is actually equal to a service tax paid by you to a service provider. Therefore go ahead and claim CENVAT credit on the actual GTA paid in each return period