Reverse charge under gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2016 Good morning friends,
I have an issue relating to cenvat of service tax paid on GTA service under reverse charge.
Whether a company paying service tax under reverse charge on GTA service can book the cenvat of same.
Please refer section or rule......
Dhanywad....

Bharath

Bharath (Expert)
Follow

29 September 2016 The cenvat credit of GTA service is available to a service recipient even though the service tax under reverse charge has been paid after claiming abatement of 75%.
However, the Central Excise and Service tax department were constantly taking a view that the cenvat credit is not available as the tax is paid after claiming abatement. Or the recipient has to get an undertaking from the provider that they have not claimed the abatement.
This issue is set at rest. A new Notification no 08/2014 applicable w.e.f. 11th July 2014 has been introduced.
The amendment clarifies that the condition for non- availment of credit is required to be satisfied by the service providers only. Service recipient will not be required to establish satisfaction of this condition by the service provider.

Regards