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Abatement on GTA

CA PRAMOD SARAOGI (Chartered Accountant) (1113 Points)

10 July 2008

Can Service Tax be charged at full rate (12.36%) on some of the consignments and abatement (3.09% effective rate) be claimed as well on other remaining consignments by a GTA ? Can ITC be claimed proportionately on the Service Tax paid @ 12.36%?

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8 Replies

C.rajesh (Articles) (1392 Points)
Replied 10 July 2008

service tax is to charged @ 3.09% .there can be no issue of input tax cerdit. refer service tax for clarification.

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Taxguy (Consultant) (3383 Points)
Replied 30 September 2008

If you go for composition then you cannot take input service credit.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 10 October 2008

The payment of ST on 25% is under Notification 1/2006 which sets out that the credits are nopt to be availed on input services for SUCH services.

Therefore we are of the opinion that there is a possibility of claiming the ITC on services used exclusively for services on which 12.36% is paid. Dept may dispute therefore you may intimate department and go ahead.

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Mayank Sharda (Student) (53 Points)
Replied 18 February 2009

As per amendment in finance act 2007 ITC can be claim on service tax paid @ 3.09% on GTA?

Credit can abe availed on input service if service tax is paid @ 3.09% to GTA.

Mayank Sharda (Student) (53 Points)
Replied 18 February 2009

As per amendment in finance act 2007 ITC can be claim on service tax paid @ 3.09% on GTA?

Credit can abe availed on input service if service tax is paid @ 3.09% to GTA.

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Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 18 February 2009

Now, GTA service is not an output service within the emaning of Cenvat Credit Rules, hence no credit of input/input services can be taken in providing GTA output service. The abatement has been made non conditional, and hence service tax should be paid @ 3.09 % only.

This payment of service tax is available as input tax credit.

VIKAS SINGHAL (CA) (30 Points)
Replied 13 January 2010

please advice me under which notification can a person paying service tax (other than GTA) can claim the cenvat credit of service tax paid on 25% of the total bill,??