Gta 75% and 25%
This query is : Resolved
22 April 2014
Dear Sir,
We have paid ST on 25% of GTA.
We have doubt i.e. is it possible to adjust the input credit against GTA payment?
Please provide the relevant rule.
Regards
R Kalyana Sundaram
We have paid ST on 25% of GTA.
We have doubt i.e. is it possible to adjust the input credit against GTA payment?
Please provide the relevant rule.
Regards
R Kalyana Sundaram
22 April 2014
Hi
Kindly let us know the nature of business is it a manufacturing company or service provider.
Please elaborate
Kindly let us know the nature of business is it a manufacturing company or service provider.
Please elaborate
22 April 2014
Hi
Kindly let us know the nature of business is it a manufacturing company or service provider.
Please elaborate
Kindly let us know the nature of business is it a manufacturing company or service provider.
Please elaborate
22 April 2014
Hi
Kindly let us know the nature of business is it a manufacturing company or service provider.
Please elaborate
Kindly let us know the nature of business is it a manufacturing company or service provider.
Please elaborate
22 April 2014
In case of GTA , the Liability of Service Tax can be paid by Service receiver also i.e; Reverse Charge Mechanism.
If you are paid ST as an receiver of Service of GTA then you are not eligible to set off input credit against liabilty arises as GTA Service, because as per Rule 3(4) of Cenvat Credit rules 2004, Service Receiver is not allowed to pay service Tax by utilising Input Cenvat Credit . He has to pay by Cash only.
Again ,if somebody pay service tax on 25% of value of taxable Service,after taking abatement,Then no Service Provider is allowed is not allowed to take Cenvat Credit.
As you are paying ST on 25 % you are not allowed to take Cenvat Credit for payment of liability of ST on GTA.
Now you can take Cenvat Credit only in case where the Service Provider or Receiver pay ST on 100 % of Taxable Value of Service.(without taking abatement).
If you are paid ST as an receiver of Service of GTA then you are not eligible to set off input credit against liabilty arises as GTA Service, because as per Rule 3(4) of Cenvat Credit rules 2004, Service Receiver is not allowed to pay service Tax by utilising Input Cenvat Credit . He has to pay by Cash only.
Again ,if somebody pay service tax on 25% of value of taxable Service,after taking abatement,Then no Service Provider is allowed is not allowed to take Cenvat Credit.
As you are paying ST on 25 % you are not allowed to take Cenvat Credit for payment of liability of ST on GTA.
Now you can take Cenvat Credit only in case where the Service Provider or Receiver pay ST on 100 % of Taxable Value of Service.(without taking abatement).
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22 April 2014
our company is manufacturing
23 April 2014
Input service” means any service, -
used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal,
So cenvat credit on input services in respect of GTA can be claimed on material inwards if any
However there is a risk in availing cenvat credit on outward transporation beyond the place of removal.
There are case laws in favour of assessee
One of them is ABB Ltd case
used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal,
So cenvat credit on input services in respect of GTA can be claimed on material inwards if any
However there is a risk in availing cenvat credit on outward transporation beyond the place of removal.
There are case laws in favour of assessee
One of them is ABB Ltd case
Message likes :
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24 April 2014
Dear Sir,
Thank you for knowledge sharing. Now I am very clear about the rule.
Thanks
R Kalyana sundaram
Thank you for knowledge sharing. Now I am very clear about the rule.
Thanks
R Kalyana sundaram
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