Input on gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2015 Dear Sir

My client is a tea manufacturer and is liable to pay service tax on GTA for stores received.My client has no other service tax liability.

Is it possible to claim CENVAT credit for payment of this liabilty.

For eg, i am paying service tax on professional bills, brokerage, etc. Can i take this as input for payment of my liability of GTA.

Thanks & Regards
Punit Kumar Bhansali
ErO0121376

CA PRIYUL SHAH

CA PRIYUL SHAH (Expert)
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17 January 2015 No sir, You can not utilize CENVAT credit for payment of service tax under reverse charge mechanism. This has to be paid in cash.

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2015 Dear Sir

However is it possible for me to claim Cenvat Credit if i donnot claim abatement 75%

Thanks & Regards
Punit Bhansali
ERO0121376

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CA PRIYUL SHAH

CA PRIYUL SHAH (Expert)
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17 January 2015 No. You have to pay in cash after claiming abatement of 75%
You can take credit of GTA for future service tax liability (Excluding service Tax payable under RCM)