Service Tax & Cenvat credit

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P.Saravanan (Querist)
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17 June 2008 Dear Friends,

Please clarify the following:

1. Service Tax liability can it be set off against excess Cenvat -Excise & Customs Credit ?

2. Service Tax on Freight (GTA) can it set off against the service tax credits?

3. Service Tax on carriage inward (with 75 % abatement - 25% on 12.36%) can it be eligible for cenvat credit.?

Thanks

CA Anand Sarda

CA Anand Sarda (Expert)
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20 June 2008 1.Custom Duty paid cannot be used for setting off service tax liability where as it can be setoff against excise credit.

2.Since we are receiving services of GTA, we have to pay service tax on 25% of freight amount. This will become input credit for us which can be used for setting of Excise and Other service tax liability.