Query on GTA Service Receive

This query is : Resolved

ganesh (Querist)
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29 September 2008 Dear Professionals,

I want one Service tax solution

Our company is received service on Transport by Road (Lorries). This is comes under Goods Transport Agency Services (GTA). We are only receiver of that service. we have no any other services.

we are mine traders. we are purchasing mines and and paying transport charges. but we are not providing any tranportation.

Monthly we are paying service tax approximately 6,00,000/- at rate of service Tax @ 3.09% afer taken of Abatment (75%)

In this one person claiming commission on our company and collecting service tax @ 12.36% by him. And we paid total commission with tax.

In this case shall we take input credit for payment of GTA Servcie tax.

Regards

Ganesh

KAMAL SETHI

KAMAL SETHI (Expert)
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29 September 2008 You are registered under Service Tax under Transport Agency Services. Would like to know what sort of industry are you in? Whether it's a service industry or manufacturing. You can take Input Service Tax Credit of amount which you are paying @3.09% against Transport Services received by you and setoff against your output service tax payable if you are in service tax industry and the same can be setoff against Excise payable if you are in manufacturing industry. You can claim service tax input credit towards commission bill charged on your company. I believe for GTA Service tax , you have to deposit service tax in Government Department first and then you can claim service tax input credit on the same.

CA Gaurav Khanna

CA Gaurav Khanna (Expert)
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29 September 2008 No Your attention is diverted to the following.

"We have now clarified that a declaration by the GTA in the consignment note issued, to the effect that neither credit on inputs or capital goods used for provision of service has been taken by them, may suffice for the purpose of availing abatement by the person liable to pay service tax," Mr R. Sekar, Joint Secretary, Finance Ministry, told Business Line.

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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29 September 2008 The necessity of obtaining declaration has been dispensed with.