Gta credit available on input or capital goods

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rohit kumar (Querist)
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06 February 2012 dear experts,

i want to know about service tax on gta paid by company, if company paid service tax on gta , after that they eligible to avail credit of such payment, my question is can company avail credit of such service tax which is paid to inward transport of capital goods,i e company is eligible to avail credit only for gta paid towards input not capital goods.
or
company can avail gta both (input as well as capital goods)

thanks in advance

CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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07 February 2012 Both the Types of CENVAT shall be allowed i.e. Inward Transportation of Inputs and Capital Goods as explicitly provided in Rule 2(l) of Cenvat Credit Rules,2004 as amended by Not 3/2011-CE dated 1.3.2011. The Amended Definition is as Below :
(l) "input service" means any service,-
(i) used by a provider of taxable service for providing an output service; or
(ii) used by the 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,
and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, “inward transportation of inputs” or capital goods and outward transportation upto the place of removal; but excludes services,-
(A) specified in sub-clauses (p), (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of section 65 of the Finance Act (hereinafter referred as specified services), in so far as they are used for-

(a) construction of a building or a civil structure or a part thereof; or

(b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or

(B) specified in sub-clauses (d), (o), (zo) and (zzzzj) of clause (105) of section 65 of the Finance Act, in so far as they relate to a motor vehicle except when used for the provision of taxable services for which the credit on motor vehicle is available as capital goods; or

(C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;

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