service tax on GTA

This query is : Resolved

M.SRINIVASU (Querist)
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25 August 2008 Dear all,
Pl.clarify the following points
1. IF bill was raised f.y. 06-07 alowng with service tax@12.24% when the payment is realised in the year 08-09, at what rate we are liable to pay S.T. i.e. @12.24% or 12.36%?

2.we are paying Service Tax on GTA on 25% of bill value, can we take this payment as input credit? if so can we take the credit in the same month.

thanking you,

Aman Mirza

Aman Mirza (Expert)
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25 August 2008 1) The service tax liability will be 12.24% b'coz the invoice is raised to client with that amount rate and actual liabilty will arise only after realisation of invoice.

2)Input credit can be taken if at all this services are used in final taxable services then input credit can be taken as an when it is paid