Service on Job Work and GTA

This query is : Resolved

sunil (Querist)
Follow

17 March 2009 Sir,

We pay Service on Job Work and GTA (Goods Transport AGency) For Example We purchased Machiney and obtain Cenvat of Rs. 2,00,000/- (Input Credit) and Output through Job Work is 1,00,000/- and Rs. 25,000/- on GTA Service (with getting 3.09% Abatement on GTA) our total liability to Service Tax Department is 1,25,000/- (1,00,000+ 25,000/-) but out Credit through Cenvat is 2,00,000/- Can we pay GTA Service through CENVAT.

Thanking You

Sunil Kumar

My E-mail id is = sunil_kumar10520@yahoo.com

Ram Avtar Singh

Ram Avtar Singh (Expert)
Follow

17 March 2009 first of all Cenvat credit on capital goods 50% current year and 50% in next year.

secondly you shold pay Rs. 25000 Service tax by eheque then take cenvat credit.