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Can we take cenvat in case of gta.

Rahul Yadav (MBA) (24 Points)

15 September 2015

Can we take cenvat in case of GTA after claiming abatment. If yes than why and if no than why.

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Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 15 September 2015

If GTA service is an eligible input service, then cenvat credit is available even after abatement.

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Aditya RVS (Practice) (221 Points)
Replied 16 September 2015

Input credit of GTA can be taken only for inward transportation and outward transportation up to the place of removal, as is mentioned specifically in the definition of input service - rule 2 (l) of CENVAT Credit rules.

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Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 16 September 2015

Under the RCM the recepient is required to pay the Service Tax and this service is included in the definition of service,you are entitled for the credit.Taking of abatement will not affect the credit as the notification 26/2012 poses only one condition i.e non availment of credit by the GTA service provider in respect of input,capital goods and input service.

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 17 September 2015

The perswon who pays GTA under RCM can avail the credit for inward transportation, intermediate transportation, removal to depot, removal to cusotmers where the transfer of proerty takes place on delivery to the customer.

Only ex works contracts no credit to sender. Eligible for the reciver of goods.

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