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CAN SERVICE TAX CREDIT BE AVAILED

Premchand (CA Job) (26 Points)

10 May 2007

CAN SERVICE TAX CREDIT BE AVAILED ON ST PAID ON GTA (FREIGHT) AS CONSIGNEE ON INCOMING MATERIAL AFTER 1/4/2006

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4 Replies

Premchand (CA Job) (26 Points)
Replied 10 May 2007

THIS QUERY RELATES TO SERVICE TAX ON GTA (INCOMING MATERIAL)

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Sanjay Dwivedi (Advocate & Consultant) (143 Points)
Replied 10 May 2007

Dear Sir,

Yes, the credit is available as explained below.

Credit of the tax paid on any service can be availed if it falls within scope of the term "input service" as defined under Cenvat Credit Rules, 2004.

Inward transportation of inputs has been specifically been included in the definition.

"Activities related to business" is another item that is included in the definition of the term 'input service'. As could be noted the phrase is of very wide import and the inward or outward transport of inputs, finished goods, capital goods, rejected materials or any thing related to business would get covered.

Thanks,

Sanjay Dwivedi
[These are my personal views]

Vk Duggal (320 Points)
Replied 10 May 2007

Credit for the service tax paid on input service will be available against the output service tax

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 May 2011

input credit on service tax paid ( either charged by GTA or paid by receipent)on transport charges for inward entry is available, as it qualifies under "input services"