Transportation of goods by road
This query is : Resolved
06 June 2016
Sir,
We are paying service tax after availing abatement 70%.
The department plea is that you can avail abatement 70% only that condition if transporter/s has mentioned following declaration on his /thier GRs
"WE ARE NOT AVAILING CENVAT CREDIT"
Please confirm us that the same is require or no.
We hope your early response .
Thanking You
Regards
P.K sharma Accounts Head
We are paying service tax after availing abatement 70%.
The department plea is that you can avail abatement 70% only that condition if transporter/s has mentioned following declaration on his /thier GRs
"WE ARE NOT AVAILING CENVAT CREDIT"
Please confirm us that the same is require or no.
We hope your early response .
Thanking You
Regards
P.K sharma Accounts Head
07 June 2016
Provision of Act:
Service tax is payable on 30% of amount charged in case of transport of goods by GTA. Cenvat Credit on inputs, capital Goods and input services used for providing taxable service shouldn't be taken by service provider.
Service provider need not prove that service provider has not availed Cenvat Credit.:
Since service receiver is liable to pay service tax under reverse charge, he can pay service tax on 30% of value only if service provider has not availed Cenvat Credit. Service receipient will not be required to establish satisfaction of this condition by service provider- Para 4.1.6(i) of MF(DR) Letter No. 334/15/2014-TRU dated 10-07-2014.
If department is insisting for payment of service tax on 100%. Then ask for declaration from GTA that they are not taking Cenvat Credit on input.
Moreover, even GTA can not avail Cenvat credit on GTA services even if he wants. The reason is that as per rule 2(p) of CCR output service doesn't include a service where the whole of service tax is liable to be paid by the recipient of service.
Service tax is payable on 30% of amount charged in case of transport of goods by GTA. Cenvat Credit on inputs, capital Goods and input services used for providing taxable service shouldn't be taken by service provider.
Service provider need not prove that service provider has not availed Cenvat Credit.:
Since service receiver is liable to pay service tax under reverse charge, he can pay service tax on 30% of value only if service provider has not availed Cenvat Credit. Service receipient will not be required to establish satisfaction of this condition by service provider- Para 4.1.6(i) of MF(DR) Letter No. 334/15/2014-TRU dated 10-07-2014.
If department is insisting for payment of service tax on 100%. Then ask for declaration from GTA that they are not taking Cenvat Credit on input.
Moreover, even GTA can not avail Cenvat credit on GTA services even if he wants. The reason is that as per rule 2(p) of CCR output service doesn't include a service where the whole of service tax is liable to be paid by the recipient of service.
07 June 2016
Thanks sir
can you please send me copy of para 4.1.6 (i) of MF (DR) Letter No. 334/15/2014-TRU dated 10.7.2014.
can you please send me copy of para 4.1.6 (i) of MF (DR) Letter No. 334/15/2014-TRU dated 10.7.2014.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
