service tax

This query is : Resolved

ramesh vadnala (Querist)
Follow

03 January 2008 We are mfgs of bulk drugs and registered as GTA & ISD, for the year 2006-07 we have submitted return taking 75% abatement on carriage outward charges and we have not taken any input credit which were paid on export clearing charges, financial charges & others.

My question is that do we eligible to claim 75% abatement on carriage outwards as well as to claim input credit on services we have paid and wat about notification no.32/2004 dt 03.12.04 ?

Please clarify..

annapurna

annapurna (Expert)
Follow

08 January 2008 As per Notification 1/2006, if your company is availing the benefit of 75% abatement against frieght charges for payment of service tax on GTA, your company cannot avail the benefits of input credit on services against the tax payable on GTA service. The tax payable on GTA service can be considered as input service tax and can be adjusted against the excise or service tax payable